June 27 Wake Up Call
Jun 27, 2011
Every Monday morning, Pro Farmer editors record the "Monday Morning Wake Up Call." It's a recorded message available by clicking here.
But... if you'd rather read the report instead of listening, each Monday morning I'll update the copy from the call here to help set your agenda of key issues that will be impacting the grain and livestock markets in the week ahead.
Monday Morning Wake Up Call
Good morning ... this is the June 27th edition of the Pro Farmer Monday Morning Wake Up Call.
Another round of rains moved across the western Corn Belt yesterday and overnight and those same systems are dumping more rain on the eastern Corn Belt and Missouri this morning. Traders still generally have a “rain makes grain” attitude and will have that attitude until USDA’s Weekly Crop Condition Report starts to show deteriorating conditions.
This is a really big week for the grain markets. On Thursday morning, USDA will release two potentially trend-setting reports for the grain markets. Traders will once again be focused on the June Acreage Report. With slow plantings this spring, traders expect total corn and soybean plantings to be lower that estimated earlier this year. For corn, traders expect total plantings to be estimated at 90.63 million acres, down slightly from USDA’s June projection of 90.7 million, but well below the March intentions of 92.2 million acres. For soybeans, traders expect total plantings to be estimated at 76.49 million acres, below planting intentions of 76.6 million acres.
While the markets will focus on the acreage update, don’t be surprised if the Quarterly Grain Stocks Report once again has a bigger impact that the acreage update. A year-ago this week, it was the Quarterly Grain Stocks Report that started the rally to all-time highs in the corn market.
Also in Washington this week, President Obama will meet separately today with Senate leaders from both parties to try to hammer out details to an increase in the debt limit along with some budget cutting strategies. And the Senate Ag panel will hold a hearing tomorrow on the condition of the U.S. livestock industry.
Friday afternoon’s Quarterly Hogs and Pigs Report showed a slightly bigger-than-expected inventory of market hogs. Once again, gains in efficiency in the farrowing house offset the impact of reduced farrowings. Look for lean hog futures to be under pressure after the quarterly inventory update.
Overnight, corn futures were mostly 5 to 8 cents lower; soybeans were 2 to 5 cents lower and wheat was mostly 8 to 11 cents lower. Those will be the opening calls for today’s grain trade.
That’s your Pro Farmer Monday Morning Wake Up Call.