June 24, 2016
Grain Marketing Specialist
Brexit vote was yesterday; Britain voted to leave the European Union causing confusion in the global market.
Corn: Down 11
Weather continues to drive the market even though the dollar was down and crude oil was up over a dollar a barrel yesterday. The 6 to 10-day forecast is favorable for pollination that should be starting in the Southern section of the corn belt. Export sales were at 34.3 million bushels, with Japan and Mexico being the top buyers. Funds continue to liquidate their position, selling and estimated 10k contracts Thursday.
Soybeans: Down 21
Funds also liquidated their position on beans, selling 12k contracts. A good week for export sales at 24.3 million bushels for old crop and new crop. The Argentine government reached an agreement to oversee the testing of soybean exports, in an effort to satisfy demands from Monsanto, who had threatened to stop selling new soy technologies in ARG. Argentina’s farm ministry raised its soybean production estimate by 500k MT to 58.0 MMT vs USDA 56.5 MMT
Wheat: MW Down 4, KC Down 8
Big Winter Wheat yields and weaker corn pressured the wheat market. Export sales on the week were at 17 million bushels, within the trade estimate of 15-22 million bushels but well above the 13/week pace needed.