Tuesday June 28, 2022

  • Markets are higher this morning after finding some technical support and rebounding on another week of rating declines
  • Previous hot and dry weather is showing in the crop condition report yesterday but cooler weather in the near term with expected precipitation will possibly bring relief
  • Reuters reporting 22/23 Russian wheat exports at 41 mmt up 25% yoy and 2 mmt over the previous record of 39 mmt
  • Brazilian corn harvest estimated to be 20% done in the center south with lower production expected but total brazillian output pegged at 113.8 mmt vs previous estimates 112.3 mmt per AgRural
  • Corn condition fell 3% now in line with the 5ya of 67% good/excellent, soybeans also fell 3% putting them 1 point ahead of the 5ya of 64% good/excellent
  • China has largely started reopening after its last round of covid lockdowns  including things such as theme parks, stores and importantly restaurants. Reports are citizens are still hesitant not wanting to risk testing positive and being required to quarantine but demand should begin to rebound with both travel and animal feeding to bring stock back up in restaurants
  • Critical growing periods are coming up for both soybeans and corn and many traders will be closely monitoring forecasts