Friday June 24, 2022

• Markets mixed this morning after this weeks sharp sell off. Possibly a correction of being oversold driven by some news of Chinese purchases of wheat from France
• A lack of fresh bullish news is starting to catch up with the big 3 commodities leaving them struggling to maintain the mid month highs and recently breaking some technical supports. The upcoming quarterly stocks and acreage report also marks the historically seasonal downtrend
• The Rosario exchange estimates Argentinian corn production up 1.5 mmt yoy to 50 mmt with beans unchanged, wheat planting is also expected to be steady yoy
• A USDA attaché in China is estimate a good crop at 4 mmt over current estimates of 24 mmt  but also pegging import demand to be strong
• More normal weather with chances of rain in the forecast still putting pressure on corn and beans
• Current ethanol production is steady week to week but well behind previous years. Current fuel prices don’t support strong ethanol demand in the near term either as many people are avoiding unnecessary travel