Morning Comments June 27, 2018
Wednesday, June 27, 2018, 7:06 AM
Submitted by: Landus Cooperative
Corn: +1 to +2
Beans: +8 to +9
The EIA’s weekly ethanol production and inventory reports will be out this morning. The trade is, once again, looking for solid production with market expectations for production of 306 to 310 million gallons. With spot ethanol futures running 66 cents under gasoline futures, there is still plenty of incentive to blend.
Traders over the next couple of days will be talking about what to expect from Friday’s USDA acreage estimate. The trade’s average guess for corn acres is 88.5 million acres, which would be up 500,000 acres from the March estimate. The weather forecast for corn growing areas in the short run is good, but there is some dryness in the forecast.
The trade guesses for this Friday’s soybean acreage report are estimating that the planted bean acreage will come in at 89.7 million acres, up 700,000 acres from the intentions report in March. Friday will also bring an update on Grain Stocks. These reports will be issued at 11 a.m.
The September dollar index is trading higher this morning at 94.38. This morning the August crude oil contract is trading higher again this morning at just above the $71.00 level. That is about $3.00 higher than at this time yesterday.