Markets opened higher this morning with corn currently up 8 and soybeans up 20.
Yesterday’s corn acres came in at 92.7 mln. acres which was above the March report but below expectations. June 1 stocks were in line with expectations. Soybean acres at 87.6 mln were unchanged from the March report and below expectations as were stocks. I believe yesterday and this mornings rally in corn is going to be short lived as the focus will shift to weather starting tomorrow. We saw a big selloff in positions over the last couple weeks as traders prepared for larger acres and favorable weather that we received.
Yesterday, the U.S. Energy Information Administration reported that ethanol production improved to a daily average of 1.058 million barrels for the week ending June 15. That was also the second-highest weekly total so far this year and the seventh consecutive week the daily average has exceeded 1 million barrels. Stocks grew 2% to reach a 14-week high, meantime.
The 10 day forecast for US weather is dry in the North/Northwest and wet most everywhere else. Amounts are heaviest in the South, pushing up into the lower half of Illinois and most of Missouri. A dome of heat will enter into the US after July 4th and hang around into the end of the model run. Temps will be in the 100’s out West and in the 90’s in the East. The forecast is bullish for some and bearish for others, again the weather is more a jump ball today.
Old crop basis levels have been sliding over the last couple weeks and took a big hit this week. End users appear to be covered for the balance of the crop year. Anyone holding old crop corn should get basis locked in ASAP as it will most likely get worse.
Have a Safe Day!