Home Farm Equipment Afternoon Market Recap for June 30, 2021

Afternoon Market Recap for June 30, 2021

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Acreage and quarterly shares numbers show favorable for corn, soybeans and wheat

 

September corn futures closed Wednesday’s session with limit-up positive factors, and soybean contracts raced greater than 6% larger after USDA’s extremely anticipated quarterly shares and acreage reviews (click here for our full protection) confirmed lower-than-expected acreage and home provides, which triggered a significant spherical of technical shopping for immediately. Wheat contracts additionally piled on positive factors of 4% to five% on the heels of bullish UDSA information for wheat acres and shares.

NOAA’s newest 72-hour cumulative precipitation map exhibits one other 1” to 2” further moisture for a big portion of the japanese Corn Belt is more likely to happen between Thursday and Sunday, though Iowa, Nebraska, the Dakotas, Minnesota and Wisconsin will solely obtain zero to hint quantities because the week attracts to an in depth. NOAA’s 8-to-14-day outlook predicts seasonally moist climate for the japanese half of the nation between July 7 and July 13, with warmer-than-normal circumstances doubtless for the northern half of the U.S.

 

On Wall St., the Dow trended 188 factors larger in afternoon buying and selling to 34,480 because the index closes out a profitable first half of 2021, with positive factors of round 12% since January 1. Prime-performing particular person shares up to now this 12 months embrace Goldman Sachs, American Categorical, JPMorgan Chase, Microsoft and Walgreens. Vitality futures had been additionally largely larger this afternoon, with crude oil including 0.75% to maneuver again above $73 per barrel. Diesel rose round 0.2%, with gasoline on tempo for fractional losses. The U.S. Greenback firmed reasonably.

On Tuesday, commodity funds had been web consumers of corn (+2,000), soybeans (+2,500) and soyoil (+3,500) contracts however had been web sellers of soymeal (-1,000) and CBOT wheat (-3,000).


Corn costs soared on a wave of technical shopping for that was triggered by an unexpectedly bullish spherical of USDA acreage and shares information out late this morning. July futures climbed 25.75 cents to $7.2025, whereas September futures rose 40 cents (restrict up) to $5.9925.

Corn foundation bids fell 3 to 10 cents decrease at three inside river terminals and dropped 5 cents at an Indiana ethanol plant whereas firming 5 cents at an Indiana elevator Wednesday. Different areas throughout the central U.S. remained regular immediately.

USDA’s newest estimates for 2021 corn acres is now 92.7 million acres, shifting up from its March forecast of 91.144 million acres and a couple of% above 2020 totals. Nonetheless, that was greater than 1,000,000 acres decrease than the typical commerce guess of 93.787 million acres.

Corn shares in all positions had been at 4.11 billion bushels as of June 1, 2021, marking a year-over-year lower of 18% and practically similar to the typical commerce guess of 4.144 billion bushels. Off-farm shares elevated 11% to 2.37 billion bushels, whereas on-farm shares fell 39% to 1.74 billion bushels. Disappearance between March and Could of this 12 months was 3.58 billion bushels, versus 2.95 bushels throughout the identical interval a 12 months in the past.

Over the previous decade, a Reuters ballot of analysts previous these reviews has really come pretty near predicting precise corn quarterly shares. The common miss was by -1.16% between 2011 and 2020. Analysts have underestimated USDA’s precise figures six of these 12 months and overestimated them the remaining 4 years.

Ethanol manufacturing improved barely, shifting to a day by day common of 1.058 million barrels for the week ending June 25. That was additionally the second-highest weekly whole up to now this 12 months and the seventh consecutive week the day by day common has exceeded 1 million barrels. Shares grew 2% to achieve a 14-week excessive, meantime.

Preliminary quantity estimates had been for 551,277 contracts, monitoring considerably larger than Tuesday’s closing rely of 331,653.


Soybean costs rose in tandem with corn on a giant spherical of technical shopping for spurred by bullish acreage and shares information from USDA this morning. Costs had been really going through double-digit drops forward of the company’s quarterly grain shares and acreage report, which confirmed lower-than-expected soybean plantings and provides. July futures jumped 82 cents larger, to $14.4175, with August futures up 82.75 cents to $14.2250.

Soybean foundation bids held largely regular throughout the central U.S. Wednesday however did tilt 4 cents larger at an Illinois river terminal and an Ohio elevator whereas dropping 5 cents decrease at an Indiana processor immediately.

Soybean plantings this 12 months at the moment are estimated at 87.6 million acres, which is 5% larger than 2020 totals however similar to USDA’s projections from March. As with corn, analysts had predicted a reasonably larger quantity – the typical commerce guess was for 88.955 million acres.

Soybean shares in all positions had been at 767 million bushels, plummeting 44% decrease year-over-year and 20 million bushels decrease than the typical commerce guess. Off-farm shares fell 27% to 547 million bushels, whereas on-farm shares fell 65% to 220 million bushels. Disappearance between March and Could totaled 795 million bushels, sliding 9% decrease in comparison with the identical interval in 2020.

Preliminary quantity estimates had been for 264,722 contracts, reasonably besting Tuesday’s closing rely of 161,505.


Wheat costs rose considerably larger after commerce guesses had been overly formidable regarding each all-wheat acres and present shares. Spillover power from corn and soybeans lent further help immediately. September Chicago SRW futures gained 34 cents to $6.8025, September Kansas Metropolis HRW futures rose 32.5 cents to $6.5950, and September MGEX spring wheat futures climbed 44 cents to $8.5850.

For wheat acres, the typical commerce guess assumed USDA would decrease its March projection of 46.358 million acres right down to round 45.940 million acres. In distinction, USDA bumped these estimates a bit larger to achieve 46.7 million acres, which is 5% larger than 2020 totals. Winter wheat plantings whole 33.7 million acres, whereas spring wheat plantings are at 11.6 million acres and durum plantings are at 1.48 million acres.

All-wheat shares fell 18% from a 12 months in the past to 844 million bushels, which was additionally 15 million bushels under the typical commerce guess of 859 million bushels. On-farm shares fell 38% to 142 million bushels and off-farm shares are down 12% year-over-year, to 702 million bushels. Disappearance reached 467 million bushels, which was 21% larger year-over-year.

Turkey has bought roughly 14.5 million bushels of wheat from non-compulsory origins in a world tender that just lately closed. The grain is for cargo beginning in mid-July.

Thailand handed on all affords in its worldwide tender to buy 7.3 million bushels of animal feed wheat that closed earlier immediately, with costs thought to be too excessive.

South Korean flour mills have bought 2.8 million bushels of milling wheat from america in a young that closed earlier immediately. The acquisition is comprised of a number of wheat sorts which might be all for cargo in September.

Tunisia issued a world tender to buy 3.7 million bushels of soppy wheat and 4.6 million bushels of animal feed barley that closes immediately. Further particulars weren’t instantly obtainable.

Bangladesh issued a brand new worldwide tender to buy 1.8 million bushels of milling wheat that closes July 15. The grain is for cargo 40 days after a contract is signed.

Preliminary quantity estimates had been for 153,777 CBOT contracts, trending reasonably above Tuesday’s closing rely of 121,144.


 

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