AM Comments 06/12/13
Wednesday, June 12, 2013, 8:04 amSubmitted by: Dustin Weiner
Good morning!
It was choppy last night which wasn’t surprising knowing that the USDA will be giving us new S&D numbers at 11am this morning. Traders are expecting slight decreases in carryout for old crop corn and beans. For new crop they are expecting a reduced carryout projection in corn with a little wider carryout projection for soybeans. Anything much different than that and the market will react accordingly.
A few facts on this June report – in the last 20 years the USDA has lowered corn plantings only 4 times. Corn yields have also been reduced only four times while soybean yields have been lowered only twice. This is likely due to the fact that at the end of June the USDA releases their actual planted acreage number, so they try to wait until then before making major changes.
Weather… Rains coming across the WCB today as forecasted with a chance for severe storms with strong winds coming this weekend. The trade is now focusing on next week’s forecast which is starting to look a little less active for IA, IL and NE. Still some chances for rains but it looks like they could be limited in coverage – hopefully allowing for bean plantings to wrap up in many areas.
Opening calls
Corn 2 to 3 cents lower
Soybeans mixed, old crop up a nickel, new crop down 2 to 3 cents
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