FC Market Commentary for June 28, 2013 Regarding USDA Report Recap

June 28, 2013

Quarterly grain stocks/intended acreage just released by USDA. 

CORN: quarterly stocks at 2.764 Bln, which was a bit lower than trade estimates;  acreage the surprise at 97.4 Mln, which was down just slightly from the March intentions. Either prevent plant acres are not being addressed yet, or the intentions number back in March was light. Either way, it is bearish new crop corn especially with non-threatening weather going forward. 

BEANS:  quarterly stocks at 435 Mln, which was slightly below trade estimates;  acreage was 77.7 Mln which was in line with trade estimates.

Bottom Line:  Old crop stocks on both corn/beans a little tighter than expected…..will support old crop prices for awhile longer. New crop outlook is bearish (despite planting problems in IA/MN) due to more acres and benign weather.  Believe them or not….the market will trade the data.

Jon Setterdahl
Farmers Cooperative Company