Dryness supporting crop prices: Weekly Commodity Market Update for 6/20/23
This week, Will and Ben talk the mindset of the market as crop conditions fall.
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Market recap (changes on week):
- July corn up $.25 at $6.42
- December 2023 corn up $.45 at $5.94
- July soybeans up $.97 at $14.69
- November soybeans up $1.26 at $13.35
- July soybean oil up 5.11 cents at 59.09 cents/lb
- July soybean meal up $20.70 at $418.10/short ton
- July 2023 wheat up $.48 at $6.81
- July 2024 wheat up $.40 at $7.30
- June WTI Crude Oil up $3.65 at $71.24/barrel
Weekly highlights:
- US ethanol production of 299 million gallons was down 6 million gallons week over week and the below 312 million gallons produced this same week last year.
- The Federal Reserve maintained their 5-5.25% short term interest rate target at their June meeting while signaling rates could increase another 50 basis points in 2023.
- US ag export sales last week, except for wheat, were pretty strong for this time of year. Wheat sales were bearish- falling below all expectations. At 17.6 million bushels- this was the highest soybean volume in 3 months.
- The National Oilseed Processors Association reported their members crushed 177.9 million bushels of soybeans in May- up 2 million bushels from the average trade guess. The soybean oil stocks volume came in below all pre-report estimates and was bullish to the market.
- Open interest positions of Chicago futures and options positions were mixed- flat for Chicago wheats, down for corn, soybeans, soybean meal and rough rice, but down cotton and soybean oil.
- There were net long gains for corn and soybeans while producer and merchants increased their net shorts by 32 and 24.4% respectively.
Topics:
- Market recap
- Crop conditions
- Drought conditions
- Export update
- EPA Renewable Volume Obligations
- Reports to watch
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