Friday, June 29, 2012

USDA Report Day - Morning note from Country Hedging's Joel Fitch

Below is morning note from Country Hedging's Joel Fitch

Good Morning,

Estimates for the report are below for comparison. 

The report was not that interesting.  Corn acreage at 96.4 was 400k larger than the guess.  Soybean acreage was 76.1 million, which was 500k above the average guess.  As I’ve been saying this number is now the high water mark because of the weather not allowing double crop bean acres to get planted.  Spring wheat acreage was only 12 million, which is below the 12.7 average guess.  I’m a little surprised, by this, it tightens the spring wheat market a little.

Stocks were in line with the guess on corn at 3.15 billion.  Soybeans were 667 million and above the 640 average guess, which could pressure the front end against the new crop.  Q-X could see some pressure, but the bean story is strong for both.  Wheat stocks were 743 million, not much here.

And now back to weather.  NE and IA are getting scattered rain today and this system should continue over into the Eastern Corn Belt.  

Questions?  Have a great day!

Joel Fitch
Market Analyst

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