Market Commentary  06/24/19 3:26:25 PM Printer Friendly VersionPrinter Friendly Version

Friday June 21, 2019

CORN
Corn futures closed the market higher today on positioning in front of this afternoon’s crop progress report and USDA’s stocks & acreage reports, which will be released later in the week.  As of midday, funds were estimated to have bought approximately 5,000 contracts of corn.  Concerns remain front and center regarding U.S. production issues for the 19/20 marketing year as corn planting has all but ceased for the year. Crop conditions will now start to play more of a role in price discovery than plantings. This afternoon, NASS will release their updated weekly crop progress report.  Market participants are looking for corn planting near 96% complete vs. 92% a week ago and a 100% 5-year average.  Today’s corn condition rating is expected at 59% good/excellent, which would be unchanged from a week ago.  The nearby forecast does look more favorable for crop development with temperatures expected to warm up this week and limited rainfall predicted.  Weekly U.S. corn export inspections were released mid-morning, coming in on the low end of expectations at 24.3 mln. bu.  On Friday, USDA will report planted U.S. corn acres and grain stocks as of June 1st.  For the most part, the trade will focus its interest on the stocks number as it will be better defined than acres.  Estimates for corn acres are between 85-90 mln. while June 1st corn stocks are forecast to be near or exceed last year’s 5.305 bln. bu. 

SOYBEANS
Buying interest pushed soybean futures higher.  As of midday, funds were estimated to have bought
approximately 5,000 contracts of beans.  Traders continue to monitor overly wet conditions across portions of the cornbelt vs. an improved weather outlook, which forecasts near to below normal rainfall and near to above normal temps the next 2 weeks.  Widespread rains have all but ended the planting season for the ECB for the year. However, there is some talk soybeans could be used as a cover crop across the U.S.; suggesting production may increase.  This afternoon NASS will release their updated weekly crop progress report.  Market participants are looking for U.S. soybean planting to come in around 88% complete vs. 77% a week ago and a 95% 5-year average. The first soybean condition rating is also expected this afternoon and is
end.  ECB processor basis remains firm & WCB processor basis is also firming.  Buyers continue to focus on a tighter U.S. balance sheet and the unwillingness of sellers to post offers in the current environment.  Producer selling was quiet today.   likely to be near 59% good/excellent.  A year ago, the bean crop was rated 75% g/e and 1993 marked its lowest rating at 55% g/e.  Friday’s USDA acreage and stocks reports are expected to show U.S. soybean acres around 84 -85 mln. and a higher June 1st soybean stocks number than last year’s 1.2 bln. bu.  Weekly U.S. bean export inspections totaled 25.1 mln. bu. this morning. In trade news, market participants will be monitoring the talks between the U.S. and China ahead of this week's G20 Summit where Chinese President Xi and President Trump are expected to meet in person.  
  
 
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