Friday June 11, 2021

• USDA report here and gone and back to trading weather with some rains across North Dakota taking some premiums out of prices this morning
• Soybean market breathed a sigh of relief yesterday with increase in U.S. carryout as well as South American supply 
  • U.S. carryout for 2020/21 year was raised yesterday as the USDA lowered the amount of soybean used for crush this marketing year, this increase subsequently lead to an increase in 2021/22 carryout as well 
  • South American production also saw an increase in their Brazilian production estimates 
  • Overall report offered some relief to the bean market – however the trade needs to continue to closely monitor this years crop conditions still unable to lose any potential yield
• Corn had a positive initial reaction yesterday however that is being overshadowed by beneficial rains today 
  • U.S. carryout for 2020/21 shrunk due to an increase in ethanol usage as well as larger export program – again this led to a decrease in 2021/22 carryout starting with a lower carry in 
  • South American production was lowered due to an expected decline in Brazils corn crop 
  • Overall, felt the corn market squeezed just a little bit tighter yesterday, take away from the report is to continue to watch crop conditions and weather like a hawk with the market unable to afford any losses
• Wheat following trend today with other commodities, with the wheat crop also seeing the benefits of the scattered rains 
  • An increase in exports for 2020/21 crop year led to a small decrease in carryout
  • A yield increase was reported for the 2021 crop year, but with a slightly smaller carry in and an increase in wheat used for food the carryout expected for 2021/22 was decreased slightly from last report