Markets are down sharply this am ahead of the USDA report. Corn is down 15 while soybeans are down 12 and wheat down 9.
June report traditional is one of the most volatile reports and we expect the history will repeat itself today as well. Big range of trade guesses for acres and stocks are an indication of this.
USDA Quarterly Stocks (Billion Bushel)
|June 2022||Average Estimate||June 2021||March 2022|
USDA June Acreage (Million Acres)
|June 2022||Average Estimate||March 2022||2021 Final|
Forecasts are calling for heat over the next two weeks, but there is rain coverage in most of the central US weather forecast is warmer after July 4th, with a high-pressure Ridge over west and plains.
While basis levels have firmed across the Midwest, they have not offset the recent selloff in the CBOT, indicating that producers and commercials have been sellers of corn over the last couple weeks. Following today’s report, look for trade to focus on weather as we head into the mid-summer months.
Have a Safe Day!