June 18, 2012
Producer Marketing Manager
In addition to weather across the corn belt, many eyes were on Greece over the weekend as elections were held again to try and determine which party held control and direction over their government. This time the conservative, pro-Euro party garnered a majority of the vote and has global markets higher this morning. Rain fell in parts of IA, IL, MN, WI over the weekend although most figure crop conditions will decline on this afternoon’s crop progress report.
Corn: As of 7:45 Up 2 Old, Up 6 New
On Friday July corn closed down 22 cents on some rumors that Brazilian corn cargos may be imported into the SE US in August. This coupled with some rumblings that negative margins in ethanol had processor demand slowing down. Dec corn was down 10 cents on Friday. Informa announced their estimate of planted corn acres at 96.7 million acres vs. the March USDA of 95.9 million acres. Trade is definitely focused on weather both in the US and in China as they are seeing some hot temps in their Northern Plain.
Soybeans: As of 7:30 Up 10
Informa estimates soybean planted acres at 75.9 million which is up 2 million from the March USDA number. It is interesting to note that Funds are long over 100,000 contracts of old crop soybeans that will have to be whittled down before the first day of delivery on the July contract. July beans finished the week with 3 straight double digit losing sessions, but found some support at that 13.70 area. Remember that the Funds are still long over 100,000 contracts.
Wheat: As of 7:30 Mpls Up 3, KC up 8
Informa estimating HRS acreage up 1.5 million acres over USDA’s March estimate. Iraq bought wheat over the weekend with it coming from Australia, Russia, and Canada. HRW Harvest is wrapping up in KS and will be underway in NE and the Dakota’s soon. Yield reports running in the 40-50 bu/acre range.
What to be watching for: Crop Conditions report this afternoon, USDA Planted Acreage report due out June 29th.