Headlines:
– THE NEXT CONAB REPORT WILL BE RELEASED ON JUNE 9TH
– THE USDA WILL RELEASE THEIR MONTHLY SUPPLY AND DEMAND REPORT THIS FRIDAY, JUNE 10TH AT NOON EST
– U.S. FARMERS FRET AS PROPERTY TAXES SOAR AMID SOURING INCOMES COLLAPSING PRICES FOR U.S. CORN AND SOYBEANS HAVE MADE IT HARDER FOR SOME FARMERS TO PAY THEIR PROPERTY TAXES, AT A TIME WHEN THESE TAX BILLS ARE SOARING AND THE RATE OF FARM BANKRUPTCIES IS GROWING. OVER THE PAST THREE YEARS, FARMLAND PROPERTY TAXES HAVE JUMPED AS MUCH AS 400 PERCENT IN PARTS OF THE UNITED STATES, ACCORDING TO STATE AND FEDERAL GOVERNMENT DATA. ONE FARMER IN OHIO SAID HIS PROPERTY TAX BILL HAS SKYROCKETED TO MORE THAN $100 AN ACRE FROM LESS THAN $20 SEVEN YEARS AGO. FARMERS SAY THE PROBLEM, IN MANY CASES, IS ROOTED IN THE REVERSAL IN THE GRAIN MARKET. THEY NOW ARE SCRAMBLING TO COME UP WITH THE MONEY TO PAY TAX BILLS BASED HEAVILY ON INCOMES THEY ENJOYED WHEN CROP PRICES WERE BOOMING IN 2012.
Summary:
Crude Oil futures continue to advance with the July contract closing above 50 for the 1st time since November 4th of last year. The US and Canada had cut back on production which contributed to this recent price rise. News outlets have reported that previous production levels would resume upon price returning above 50. US Crude stockpiles likely fell by 3.5 million barrels last week to mark a third straight week of declines according to a Reuters survey.
After an initial show of weakness at the start grains managed to return to strength by the end of the day. Front month contracts were generally weaker than deferred contracts. We have both the CONAB and USDA reports scheduled for the end of the week and 1st notice for July contracts is only a couple weeks away. Recent reports of possible hot weather in Brazil forecasted for the end of this week has helped keep new crop prices stronger. Fed Chair Yellen backed off a bit on the possibility of a rate hike in light of the recent labor report which may have caused the US Dollar to weaken a bit. July Corn was up 1 tick and December Corn gained 3 cents. Like Corn it was the new crop November Bean contract that had the strong showing today. The November contract gained 12.25 cents while the July contract comparatively only advanced 4.50 cents. Ahead of the reports scheduled for the 9th and 10th the CME Group will increase margin requirements for Soybean and Soybean meal intra-market spreads today. Wheat futures posted its 5th consecutive day of gains. The July contract added another 3 cents to its streak of advances. The Winter Wheat crop is only 2% harvested which is 8% behind the 5 year average pace. On the flip side it is 91% headed, outpacing the normal maturity by 8%.
