6/11/13 Market Summary Corn A short covering day for the corn market ahead of tomorrow’s crop production report. Corn funds bought 8k contracts on the day. Nearby corn rallied to close 9 ½ cents higher on the day while new crop was almost a nickel stronger. Weather remains the biggest market mover it feels at this point. The million dollar questions still remains how many acres will get planted during this stretch of dry weather. According to a Reuters poll out today the USDA will reduce it corn planting in Wednesday’s report by nearly 1.5 million acres. Typically USDA does not adjust planting or yields estimates in the June WASDE however this year with the delays we have seen it is expected to happen. It is interesting to note in the last 20 years USDA has lowered its corn acreage estimates 4 times in the June report. Beans Beans rallied with old crop July leading the way. July closed up 28 ¾ just off the high of a 30 cent range. November closed up 8. USD$ Index much weaker today @ 81.07, a new 3-month low. Wheat Wheat futures closed higher prompted by Monday’s drop in weekly crop conditions - Chicago July closed up 7 cents closing at $6.96 ¾ while KC July wheat closed 4 cents higher at $7.30. Very quiet, light volume day ahead of tomorrow’s report. Historically there are few/ minor changes made in this report. Old crop usage is expected to be unchanged leaving carryout unchanged as well. Total winter wheat production per pre report estimates is expected to drop 25 to 30 mbu. Spring wheat acreage is expected to drop 500K to 1 mln acres. Report out at 11 a.m. Central time. Recent discovery of GMO wheat reared its ugly head again Tuesday with Japan announcing restrictions on importation of feed wheat from the US. Shipments from the PNW are suspended and only SRW wheat can be offered in any future tenders until further notice.
Posted on: Tue, 11 Jun 2013 21:49:56 +0000
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