Wednesday June 29, 2022

• Markets mixed this morning with some positioning going on ahead of tomorrows highly anticipated Acreage and quarterly stock report
• Snobelen’s Office will be closed Friday for Canada day and the markets will be closed Monday for the US holiday
• A couple things we are looking for tomorrow
  • what happens to corn acres? unchanged due to higher planting in the belt but lost acres in the Dakotas or as expected planting in the belt with lost acres in the Dakotas, higher acreage number in corn is unexpected but still possible and this could provide a bearish surprise
  • do we see the wet planting season in the Dakotas shift acres to beans and grow from the previous report or were corn prices strong enough to encourage planting later than normal
  • There is also a possibility they leave all acres unchanged and resurvey due to the late planting which could make it hard to justify changing acres now
  • The stocks report also has the potential to cause volatility, this will be our best look at feed usage for some time and with the current high prices its possible we used less feed than anticipated which would increase the carry in for the 2022 season
• EU shows soft wheat exports up to 27.14 mmt from  25.6 mmt last year with corn imports also up yoy to 16.17 from 15.04 mmt
• Weather still on traders minds but tomorrows report will likely overshadow the forecasts going into the long weekend showing a hotter and wetter July
• The possibility of China invading Taiwan has hit the news again and it should be noted that China has recently began to strengthen ties with Russia, Brazil, and India as well as pushing towards self self sufficiency potentially in anticipation of Western sanctions (similar to those placed on Russia) should they decide to attempt reunification