6/24/14 Good afternoon, Corn couldn’t find strength to push forward today as it finished lower across the board. Funds were estimated sellers of 6,000 contracts. Crop conditions only down 2% in yesterday’s condition report to 74% is not bullish (even if IA and MN saw sizeable declines) and good weather forecasts for the 6-10 and 8-14 day time frames point to a continuation of generally good growing conditions. There is talk of U.S. avg. corn yield approaching 175 bpa. This is premature, but coupled with the average corn acre expectation by the trade at 91.7 mln., production would be 14,764 mln. bu. and total supply would be 15,909 mln. bu.! China’s reluctance to import U.S. DDGS is still in the picture and there is talk of world wheat pricing working to price itself as a feed grain. The one bullish factor for corn remains the well supported basis on the continued lack of producer selling of both old and new crop bushels. Soybean futures traded lower again today as a favorable crop rating in yesterday afternoon’s report weighed on prices. Bean ratings declined 1% in yesterday afternoon’s condition report but remain record high for late June. 72% of the U.S. soybean crop was rated good to excellent compared to 65% last year while soybean planting was estimated to be 95% complete, which is slightly above average. Also adding to the bearish tone was talk of slowing export demand as shown on yesterday’s weekly bean inspections, which were less than a third of what was inspected the prior week. Next Monday (June 30th) will bring the grain stocks and planted acreage reports. Analysts are forecasting a bean stocks number around 378 mln. bu. For reference, June 1st bean stocks have been above trade expectations in 5 of the last 7 years. In regards to acreage, traders are expecting to see an increase to an estimated 82.2 mln. It is unusual to see a bullish bean acreage surprise in this report.
Posted on: Tue, 24 Jun 2014 20:13:08 +0000
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