Market Commentary  06/19/19 3:05:45 PM Printer Friendly VersionPrinter Friendly Version

Wednesday June 19, 2019

CORN
Corn futures closed weaker as the extended forecast continues to call for a warmer/drier trend towards the end of June.  Rain will move through the eastern corn belt through this coming weekend, but a ridge is expected to build over the southwest in the 10 to 15-day period.  This will push the recent rain pattern further north and allow the saturated areas from Illinois to Ohio to dry out a little.  The focus on the market has turned from prevent plant to crop conditions, so a more normal weather pattern of temperatures and precipitation would be perceived as beneficial to planted corn.  The acreage report will be released on June 28th and the corn trade will be looking for any hints in to what final planted acreage may be.  With corn planting taking place past the normal collection period for this report, it is doubtful that the full extent of prevent planting will be known until harvest time. The USDA will also issue the quarterly grains tocks report as of June 1st.  Corn stocks are still comfortable, but this will give a sense of just how tight things are in the east going into a low production year.   The ethanol report this morning showed corn grind for ethanol at 107.76 Mln. bu.  This is down 1.5 Mln. bu. from last week, but still ranks as the 2nd highest total of the marketing year.  Ethanol stocks totaled 21.61 Mln. barrels, down 189,000 barrels from last week.   This is the lowest stocks total since May of 2018.  Ethanol margins remain in the red by 5 to 10 cents.  

SOYBEANS 
Soybeans closed weaker to follow along with the weaker grain markets.  A better weather forecast weighed on beans today, which is expected to improve crop conditions for beans.  Some bean planting is still occurring through the Midwest and is likely to continue through the end of the month, weather permitting.  The first bean condition report of the season will be out on Monday.  Keep in mind, most of the bean planting seemed to occur in better conditions than corn planting.  The bean market has become immune to China trade talks, and the last couple of session is no exception.  Trump tweeted yesterday that him and the President Xi of China had a good conversation and that they are prepared to meet at the G20 meetings next week.  Trade talks have reportedly begun again between the two countries.  The equity markets bounced on the optimism, but the ag markets shrugged it off.  The FED kept interest rates unchanged this afternoon, but half of the directors believe that a rate reduction is possible within the next few months.  Export sales will be out in the morning.  
 
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