(Agriculture.com) – On Tuesday, the CME Group’s futures markets watch investors fade the upcoming USDA June supply/demand numbers.
In early trading, July corn futures are 5½¢ lower at $4.10; December corn futures are 5½¢ lower at $4.29.
July soybean futures are 4¼¢ lower at $8.54¼; November soybean futures are 4¼¢ lower at $8.81½.
July wheat futures are 3½¢ lower at $5.04. July soy meal futures are $1 per short ton higher at $312.40. July soy oil futures are 0.05¢ lower at 27.33¢ per pound.
In the outside markets, the NYMEX crude oil market is 42¢ higher, the U.S. dollar is lower, and the Dow Jones Industrials are 114 points higher.
Al Kluis, Kluis Advisors, says investors will be watching for today’s USDA Crop Progress Report and tomorrow’s June Supply/Demand Report.
“The USDA Crop Progress Report indicated that the corn ratings were at just 59% good to excellent. That is low number, and now it is important to watch the trend in ratings as we get into June and July,” Kluis told customers in a daily note.
Kluis added, “Regarding today’s USDA June Supply/Demand Report, I am watching to see not only the USDA projected corn crop but also what the USDA does with ethanol and exports for the rest of this year and the next marketing year. A smaller crop does not always create a smaller carryout.”
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MONDAY’S GRAIN MARKET REVIEW
On Monday, the CME Group’s farm futures close higher.
At the close, July corn futures finished steady at $4.15; December corn futures ended ¾¢ higher at $4.34.
July soybean futures settled 2¼¢ higher at $8.58; November soybean futures ended 2¾¢ higher at $8.85.
July wheat futures closed 3¢ higher at $5.07¾.
July soy meal futures closed $1.10 per short ton higher at $313.40. July soy oil futures ended even at 27.38¢ per pound.
In the outside markets, the NYMEX crude oil market is 85¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 118 points higher.
Al Kluis, Kluis Advisors, says investors will be watching for today’s USDA Weekly Crop Progress Report and tomorrow’s June Supply/Demand Report.
“The USDA Weekly Crop Progress Report today will show nationwide corn planting at about 85% complete. I also look for the initial report on corn conditions to show that about 60% of the corn will be rated good to excellent, since the USDA only rates the corn that is emerged,” Kluis told customers in a daily note.
Kluis added, “We could be set up for a bearish USDA Crop Production Report on Tuesday. I doubt if the USDA will cut the corn crop in the June 11 report as much as the private estimates are expecting. If the USDA uses the same methodology as in 1995 and 2012, then the USDA may report a corn crop that is around 14 billion bushels.”
