Good Morning! Paul Georgy with the early morning commentary for June 28, 2016.
Grain markets are higher on concerns that weather maps will dry out. Traders are likely to continue to even positions ahead of Thursdays USDA reports.
Weather forecasts added rain in yesterday's 6 to 10 maps. While temperatures will be mostly normal to below normal in the near term, they to warm up in the extended forecast. NOAA will be out with its updated July maps on Thursday morning.
Are you ready for the June 30th USDA Stocks and Acreage reports? Join us tonight in our next Ag Leaders Webinar for estimates and expectations of these important reports. Register Here. Plus, find out how Brexit could impact grain markets with CME's Blu Putnam.
Crop Conditions yesterday afternoon had corn rated at 75% good to excellent (GTE), unchanged from last week. The average trade guess was for 73% GTE. Silking was seen at 6%.
Soybean conditions came in at 72% GTE, a drop of 1% The average trade guess was 72%.
Wheat conditions had spring wheat falling 4% to 72% GTE. Analysts had been expecting a 75% rating.
Export inspections for the week ending 06/23/16 had corn at 1,451,227 tonnes, soybeans at 272,066, and wheat at 511,701. All three were within trade estimates.
Brazil's corn harvest in Mato Grosso is estimated at 16.6% complete according to the IMEA. That is over last year's harvest pace at this time of 12.8%.
Statistics Canada will report on crop plantings tomorrow. Canadian farmers are expected to have planted slightly less wheat for harvest this year and about the same area of canola, according to a Reuters survey.
The Russian Agriculture Minister announced plans to sell 500,000 tonnes of grain this year to China. Wheat and barley would make up the bulk of sale. They would also like to eventually open up the Chinese meat market.
Bulgaria's Agriculture Ministry estimates this year's wheat crop at more than 5.0 million tonnes. That would be an increase over last year's 4.6. Higher production was made from a 12% increase in acreage.
Kraft and Mondelez must face a lawsuit accusing the two companies of price-rigging wheat contracts according to a federal judge ruling.
Funds were estimated buyers of 11,000 soybean contracts, 4,500 soymeal, and 3,000 soyoil in yesterday's trade. They were estimated sellers of 3,000 corn and 5,000 wheat contracts.
GDP will be out this morning at 7:30 AM CT, and Consumer Confidence is due at 9:00 AM. Both reports could offer influence to the US dollar trade.
US Rate Hikes by the Federal Reserve are expected to be pushed back from September to December based on the British decision to leave the European Union. (Tune in to tonight's webinar for CME economist Blu Putnam's take on this issue - register)
Cattle showlist numbers had the number of finished cattle being offered for sale by feedlots this week 24,000 head smaller than last week.
Dressed beef values were lower with choice down 3.26 and select down .44. Pork cutout values were down .27.
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