Headlines:
- USDA ACREAGE REPORT IS SCHEDULED FOR JUNE 30TH
- FIRST NOTICE DAY FOR JULY GRAIN AND OILSEED FUTURES IS THURSDAY, JUNE 30TH
- BRAZIL CORN PRICE SEES RECORD FALL – BUT MAY REVIVE, INSTITUTES SAY
A TUMBLE IN BRAZILIAN CORN PRICES, AS SUPPLIES FROM THE ONGOING SAFRINHA HARVEST HIT THE MARKET, COULD GO INTO REVERSE AS COMBINES REACH LATER–SEEDED AREAS EXPECTED TO SHOW LOWER YIELDS. CORN PRICES IN MATO GROSSO STATE, THE TOP GROWER OF THE GRAIN FOR THE SAFRINHA HARVEST, FELL BY 12.2% LAST WEEK TO $28.90 PER 60-KILOGRAMME BAG, EQUIVALENT TO ABOUT $3.61 PER BUSHEL, ACCORDING TO IMEA, THE STATE‘S AGRICULTURAL RESEARCH INSTITUTE. THE DROP IN PRICES – WHICH TEND TO BE FAR CHEAPER IN MATO GROSSO THAN IN CHICAGO, TO ACCOUNT FOR THE EXTENSIVE TRANSPORT COSTS OF GETTING CROP FROM THE LAND–LOCKED STATE TO BRAZIL‘S PORTS – REFLECTED “THE INCREASE IN SUPPLY CAUSED BY THE ADVANCE OF HARVEST“, MEA SAID. THE INSTITUTE PEGGED THE STATE‘S HARVEST AT 16.6% COMPLETE, UP 6.3 POINTS WEEK ON WEEK, AND UP FROM THE 12.8% PROGRESS RECORDED A YEAR AGO.
Summary:
Soybeans futures were up for a second consecutive day. Post Brexit the markets were lower with sentiment that some of the selloff was perhaps overdone. Wheat and Corn tries to rally today along with Beans but only Beans were able to finish in positive territory. All three markets ended the day well off of their intraday highs. After a strong rally yesterday, Beans was able to continue higher on reports of dry weather forecasted for parts of the central Midwest over the next few days. Additionally, there were reports that subsoil moisture declined last week. Even after the rainfall last week, the USDA reported subsoil moisture at 74% adequate as of Sunday, down from 78% the prior week (well below the year-ago level of 83%). More importantly, apparent strong demand for US inventories has seen a big boost.
Soybeans were rated 72% good or excellent, down from 73% the prior week. While 75% of Corn was rated good to excellent, unchanged from the previous week. Little or no rain is expected in parts of the Corn Belt, according to the National Weather Service (NMS) in the short term. The longer term outlook is calling for rain in southern and northern parts of the Corn Belt but little rain in central regions.
July and December Corn finished unchanged. July Beans was up 17.75 and November was up 14.75. Wheat rounded out the day down 3 and 1 cents for the July and December contracts.
