Information about grain markets and info to help producers to market crops. See how various grain marketing strategies can effect ones average price. We will be posting various potential trade and option strategies along with marketing decisions made on our mock farms.
Friday, June 29, 2012
Mid day update for 6-29-2012 USDA stocks and acre report day
Below is mid day update from Country Hedging's Chris Steinhoff
Crude oil is up $4.50, US$ index is 1.16 points weaker…DJIA
is 220 points firmer…all seems to be a result of Eurozone bailout fund and EU
banks accessing that $...Month end and quarter end positioning is
I’ll be brief…
Corn---report day and the market was kinda volatile for
about 5 minutes on either side of the 730am release time. Acres were slightly
larger than expectations and about 500k larger than in March. June 1 stocks
were 500mb smaller than a year ago according to the survey anyway. Farmer hauls
old crop corn, and in many instances is surprised at how many bushels he still
has left!!! Amazing!!! ….Garbage into the report, garbage out….Weather still
remains warm and dry with a few scattered storms on the radar moving across
ILL, but not really in the areas that need rain. Outside market strength and
US$ weakness also provides major support. Cash markets seem to be steady at
best and exporters seem to have a hard time finding homes for trains.
Domestic users appear to be slowing down with some ethanol plants beginning
their scheduled downtime sooner than planned. CN enters first notice day and
delivery and finds strength to lead spreads firmer. Not much else as we enter a
weekend tasselling corn amidst hot and dry conditions. Are we factoring in the
worst possible corn news???
Beans---lead the way in strength on tight world supplies,
strong demand and the crop most influenced by world economics. USDA found a few
more acres than expected but the double crop bean acres are at risk
because of dry weather. Personally I think those acres will get seeded, but
whether they have the moisture to grow is the question ? All else is quiet as
farmer selling has slowed, so has farm gate trucks. Be careful on new crop
purchases as X forward is inverted.
Wheat—HRW harvest expands into South Dakota with strong
yields reported, quality good and protein mixed. SRW harvest moves too.
Summarizing KS, it seems the harvest was better than expected volumes. MGEx
moves higher and the spring wheat crop looks pretty good in most places. Acres
came in about where I expected as we saw a slight increase from March
intentions. Stocks surprised me somewhat as it appears the USDA or farmer did
not recognize an early HRW harvest. So the next stocks # may find a few
bushels. Cash markets are mostly steady. Farmer movement is pretty strong for
old crop DNS and steady HRW.
We have a watch box in IN…yoo hoo