Thursday June 27, 2024

• New crop corn futures posted fresh lows again yesterday, reacting to the favorable weather conditions across the Corn Belt
• All eyes are on tomorrow’s USDA June Stocks and Acreage Report, the calm before the storm
  • The report is expected to have an overall bearish tone
  • The acreage report data collected for this report is from early June and came ahead of the severe flooding in the northwestern Midwest.  Effects of the flooding could be reflected later on in the August crop report
  • Traders expecting a modest rise in corn planted acres compared to the March intentions report
  • Anticipated increase in soybean acres from the March report
  • June 1st stocks of corn, soybeans and wheat are likely to be higher compared to this time last year
• Stats Canada Acreage report released this morning- see figure below
  • Ontario corn acres down 4.6%
  • Ontario soybean acres up 7.1%
  • Nation wide Winter Wheat acres down 5.8%
• Wheat exports sales were better than expected this past week
• World Wheat import demand continues to build
  • Saudi Arabia has issued a tender for 595,00MT of wheat for arrival Sep-Dec
  • Jordan’s tendering for 120,000MT of late summer wheat
• India has allowed limited imports of corn and various oils, under their tariff-rate quota. This allows for 500,000 tons of corn imports. Domestic corn prices in India are on the rise due to corn feed and ethanol demand
• Ethanol production fell this week to 1.043 million barrels per day, down from 1.057mln bpd last week
• Wheat harvest in Romania is showing promising yields, could be a potential record wheat crop, helping to offset some of the shortfall in Russia/Ukraine