North Gower Grains

Tuesday, June 16, 7:24 am

Monday was a mostly positive day for our markets. Harvest corn closed up 1 1/2, harvest soybeans closed up 2 3/4, harvest winter wheat closed up  5 1/4 and harvest spring wheat closed down 2 1/4. In the overnight trade corn in up slightly, soybeans are negative, winter wheat is positive and spring wheat is even. Oil closed down $3.31 yesterday at $81.57 per barrel. It is down another $2.34 this morning currently priced at $78.41. Our dollar traded between a low of $0.713 US and a high of $0.716 US yesterday with it closing out in the middle of the range. This morning it is stronger with it now valued at $0.714 US.

The USDA weekly crop progress report reported the US winter wheat harvest is now 25% complete up from last weeks 11%. US winter wheat good to excellent rating increased to 27% from last weeks 25%. Corn’s good to excellent rating is at 68%, up 1% from last week and soybeans good to excellent rating is at 66% up 2% from last week. All are in line with trade expectations.

S&P Analysts are forecasting 96 million acres of corn up from their 95.2 million acre pre-plant estimate. They’ve also increased their forecast for planted soybeans acres from 85 million acres to 85.3 million acres. The USDA will update their acreage predictions on June 30^th.

The commodity markets did open quiet bearish Sunday night and in the overnight trade but staged a dramatic comeback during the day trade yesterday. The reason? Possibly traders trying to take advantage of some bargain buying. The fundamental in the marketplace are all still point negative; weather is positive for crops, South America is having a strong crop year, crop conditions are positive. Oil is dropping due to the news which should be affecting corn and soybeans as well.