Mid-Morning Comments 6/24/15
Wednesday, June 24, 2015, 10:06 AM
Submitted by: Eric Kist
Markets traded lower overnight, but are now gaining a little ground and trading mixed. Old crop corn is currently unchanged and new crop corn is 1 cent higher from yesterday’s settlement, while old crop beans are down a penny, and new crop beans are up 2 cents.
Both old and new crop bean futures have gained 50+ cents over the past week, and are testing their 200-day moving averages, and are trading at the highest levels we’ve seen in nearly two months. Corn futures have also been rallying the past few days, and are currently up 15 cents on the week. Extended weather forecasts are mostly at play here, as continual rains throughout the majority of the Midwest are starting to impact crop conditions, and more rains are forecast in the weeks to come. The National Weather Service’s 6-10 day and 8-14 day outlooks show below normal temperatures, and above normal precipitation going forward. Iowa may see some showers during these periods, but the Eastern Corn Belt is expected to be hit the hardest.
As of the most recent crop conditions report, soybeans in the good-to-excellent rating are the lowest since 2008 for this time period, with several million acres yet to be planted.
Ethanol production numbers released this morning show weekly production was up and inventories were down over the past week, offering a bit of support today.