Morning Comments June 15, 2017
Thursday, June 15, 2017, 8:06 AM
Submitted by: Landus Cooperative
Corn down 4
Beans down 5-6
Yesterday, the July corn contract closed 4 cents lower settling at $3.77, and the December contract was 3 ½ cents lower closing at $3.95 ½. Corn traded higher yesterday morning but turned lower when an updated forecast came out with soaking rains for the last part of June throughout the Midwest. EIA weekly ethanol report came out yesterday with production down for the 2nd week. Trade is becoming concerned that domestic gasoline usage, lowest in 6 weeks, is beginning to effect ethanol demand.
The July bean contract closed ¾ cent lower yesterday settling at $9.31 ¾, and the November contract was unchanged on the day settling at $9.39. Beans were trading higher for most of the morning but followed corn and wheat’s descent. Brazilian ports are progressing at a record pace exporting beans, up 5 MMT from last year, putting additional pressure on beans. Two reports out today are the weekly export sales and the NOPA crush report, weekly export sales are expected between 300,000 and 400,000 MT. The NOPA Crush report is expected to be disappointing at 143 mln bushels, well behind last year’s 152 min bushels.
Corn and beans are both down on the overnight. The dollar is a little stronger after the Fed announced raising the key interest rate .25 points to 1.25%. Crude is weaker as gasoline demand is down.