MarketEdge PM Comments
Jun 16, 2023
(Mike Moellenbeck)
It was a wild end to the week; corn was up 17-24 cents and beans were up 35-50 cents for the day. For the week, nearby corn was up 70 cents, new crop corn was up 67 cents, old crop beans gained 80 cents and new crop beans were up $1.39. The dry weather has finally taken hold of the trade and prices are rallying because of it. Rains are expected to dash through parts of the western corn belt this weekend, but the eastern areas will likely miss out. At best there are modest chances for the west through Tuesday, while the east is to remain dry for the next 15-day period.
The USDA has been showing a national corn yield of 181.5 bushels/acre, but it is believed the market is currently trading a 177 yield. Prospects of a 2+ billion bushel carry out for next year are fading quickly.
Other highlights from the week:
It was a wild end to the week; corn was up 17-24 cents and beans were up 35-50 cents for the day. For the week, nearby corn was up 70 cents, new crop corn was up 67 cents, old crop beans gained 80 cents and new crop beans were up $1.39. The dry weather has finally taken hold of the trade and prices are rallying because of it. Rains are expected to dash through parts of the western corn belt this weekend, but the eastern areas will likely miss out. At best there are modest chances for the west through Tuesday, while the east is to remain dry for the next 15-day period.
The USDA has been showing a national corn yield of 181.5 bushels/acre, but it is believed the market is currently trading a 177 yield. Prospects of a 2+ billion bushel carry out for next year are fading quickly.
Other highlights from the week:
- The weekly drought monitor released on June 15th showed 57% of the US corn areas under some level of drought. This was an increase of 12% week on week.
- Crop ratings are expected to decline in next Tuesday's update. The current corn rating is 61% good/excellent while the bean rating was shown at 59% good/excellent.
- The May NOPA Soybean crush report was friendly with a higher crush number than expected and a lower stocks figure. The crush was a record for May at 177.9 million bushels. Soybean oil stocks were 1.872 billion pounds versus the 1.942 billion pounds estimated.
- The grain markets are closed on Monday and will resume trading Monday night. A 3-day weekend for the markets will likely result in wild trading activity Monday night.
- River Valley offices will be open but we will be out of the market on Monday.