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MARKET COMMENTARY

Morning Comments June 30, 2017

Friday, June 30, 2017, 8:06 AM
Submitted by: Landus Cooperative


Opening Calls:

Corn  +4 to +5

Beans +2 to +3

 

Happy Friday! Not only is today the end of the week, but also the end of the month and the end of the quarter. With two USDA reports out on top of that, the markets could be a little squirrely. 

 

USDA Quarterly Stocks and Acreage Reports are out at 11:00 a.m. today. Here is what we are expecting to see based on average estimates:

Corn:

5.123 bil. bu of stocks vs. 4.711 last year

89.903 mil. acres vs. 89.996 for March est. and 94.004 last year

 

Soybeans:

983 mil. bu of stocks vs. 872 last year

89.750 mil. acres vs. 89.481 for March est. and 83.433 last year

 

Yesterday, the September corn contract closed 3 1/4 cents higher and the December contract closed 3 3/4 higher. Concerns about further loss in wheat yields have led to a strong rally for wheat, with corn being pulled along for the ride. The pattern continues this morning, with wheat being up 14 cents and corn reaping the benefits. The stocks report that is also out today is expected to show large U.S. stocks, which could temper rallies that may occur due to acreage adjustments.

 

The August soybean contract closed 1 3/4 higher yesterday, while November added 3 cents. The bean trade started off with a nice rally in the morning, but lost most of that by the close. The primary explanation for the market staying in the green this morning is short covering ahead of the report. The impact of these reports on the funds is expected to be short lived, with their attention returning to weather soon after the report.

 

Have a happy and safe holiday weekend! 

 

 

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