Wednesday July 6, 2022

Markets are mixed this morning after yesterdays continuation of the post report decline with some support from another decline in crop conditions being offset by overnight rains in the northern belt. Stable or increasing conditions is expected for next weeks crop condition report due to good weather
IMEA reports record production for the top crop producing state Mato Grosso for 21/22 corn and 22/23 beans with corn harvest just over half done
Canadian wheat planting is reported by Stats Can to be 25.4 M acres over last years 23.4, corn up 0.1 M acres to 3.6 and beans down 0.05 m acres to 5.27
Ukraine’s ag minister reported June wheat exports almost tripled may but are still behind last years 662k mt at 138k mt
- corn exports were around 1 mmt which is steady with May
Corn Ratings fell another 3% in the US in yesterdays delayed crop condition report to 64% good/excellent behind the 5 year average of 76% and last years 65%
Bean ratings lost 2% putting them at 63% good/excellent which is close to last year and the 5 year average
Winter wheat harvest progressed 13% on the week at 54% complete which is higher than both the 5 year average and last year
Traders liquidating their position in the markets have driven prices lower since mid June being particularly magnified the last 2 trading sessions. Their absence will likely continue to be felt as the bullish fundamentals wear out their story and focus continues on the possibility of a recession and the beneficial growing conditions projected by the current forecast models