June 26th 2012
Grain Marketing Specialist
Corn: As of 7:30- 13 higher
Persisting hot/dry weather sent the corn market limit higher yesterday. When looking at the weather models this morning both the 5 day and 6-10 day look to show little relief. Crop ratings yesterday afternoon had corn at a sharp 7pt decline to a 56% g/e rating. This would make it the worst rated crop for this week since 1992. Notable declines - Illinois 15 pts down to 37 g/e and Indiana 10 pts down to 27 g/e. Hot/dry weather forecast feed the idea of yet another decline next week as key growing area’s move into the crucial pollination period and irreversible damage already done in some areas. Markets may be tempered by looming USDA report on Friday.
Soybeans: As of 7:40- oc 5 higher, nc 3 higher
Hot/dry weather was feeding this market yesterday as well along with the announcement of China buying 120,000 metric tons of 12/13 crop. Ratings down 3pts to 53% g/e. This was within expectations but does add to an already fragile balance sheet. Even with a modest acre increase in Fridays report, trend line yields (unlikely with the ratings we are seeing) do little to fix our tightness.
Wheat: As of 7:40- spring 5 higher, winter 7 lower
Spillover strength form row crops and a decreasing Russian harvest estimate fueled a wheat rally yesterday. Winter wheat harvest progress at 59% complete and spring wheat crop ratings up 1 to 77% g/e. Momentum indicators remain bullish both KC and MN wheat even with last night set back in KC.