June 27, 2016
Producer Marketing Manager
All about the weather forecasts……Coverage of weekend rain for U.S. corn and soybeans was lower than expected and thus we were higher in the overnight session.
CORN: As of 7:45 – Up 4
Day 2 Brexit fallout is in play with the dollar on the rise again. The EU has made comments it will not make the British Exit easy or comfortable and this could lead to trade disruptions when new deals have to be made. The currency move that we are seeing could continue will be a headwind for US dollar denominated futures and exports. The USDA Crop Progress report out this afternoon is expecting the Good/Excellent corn rating to be unchanged to down 1% v. last week’s 75% (68% last year)
SOYBEANS: As of 7:45 – UP 20
This afternoon’s USDA Crop Progress report is expected to show Good/Excellent soybean ratings unchanged to down 1% v. last week’s 73% (63% last year). The forecasted precip totals for the next 5 days has significant amounts in the Western and southern areas of the Corn Belt.
WHEAT: As of 7:45 – Mpls up 1, KC up 3
U.S. winter wheat harvest is estimated to be at 40-45% on today’s USDA Crop Progress report vs. approx. 33% last year and fairly close to the 5-year avg of 41%. Harvest progress is moving into NE and CO and should see some activity in SD possibly around the 4th. The US Dollar strength (Euro weakness) after the Brexit vote is shown below…..