June USDA supply and demand report preview: Weekly Commodity Market Update for 6/6/23

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Brownfield's Weekly Commodity Market Update

This week, Will and Ben talk USDA report expectations. ----- Market recap (changes on week): - July corn down $.06 at $5.97 - December 2023 corn up $.09 at $5.37 - July soybeans up $.29 at $13.50 - November soybeans up $.08 at $11.79 - July soybean oil up 1.61 cents at 49.26 cents/lb - July soybean meal up $3.20 at $401.20/short ton - July 2023 wheat up $.23 at $6.24 - July 2024 wheat up $.24 at $6.86 - June WTI Crude Oil up $1.41 at $72.09/barrel Weekly highlights: - Oil prices are up this week after a new OPEC+ deal released Sunday became public. Production cuts already in place were extended along with Saudi Arabia announcing that they would reduce production 1 million barrels per day. - US gasoline demand was down 4% week over week and crude oil stocks, distillate fuel and ethanol all rose on the week. - US ethanol production increased 6 million gallons to 295 million gallons but remains below the comparable week experienced last year. - In USDA’s grain crushing report- corn used for ethanol in April was down 5% from March and 1% from April 2022. - Soybeans crushed for crude oil in April was 187 million bushels- down 11 million bushels from March but up 6 million bushels from April 2022. - US ag export sales were higher week over week for corn and soybeans. Grain sorghum experienced a 3-month high while wheat export sales were bearish in the old crop falling below all expectations. - Open interest position of Chicago futures and options positions were mixed but pretty flat across our commodities- wheat (+0.0%), corn (-0.7%), soybeans (+0.6%), soybean oil (+0.5%), soybean meal (-0.1%), cotton (+2.0%), and rough rice (+3.1%). - Managed money accounts largely moderated on the week with wheat and corn both decreasing their net short while soybeans decreased their net long. - Weekly Ag Export Inspections were neutral on the week as everything was within expectations and close to the same volumes as the week prior. - Nearly everything that is going to get planted this year except for cotton will be planted by the end of the week- corn at 96%, soybeans at 91%, and spring wheat at 93%. Only 71% of the cotton acres are planted with flooding in the southern plains preventing any progress. - This was the second week of conditions ratings for corn and the conditions index fell to 368 vs 374 last week and 383 on average. 500 is a perfect score. - Winter wheat harvest has started with 4% completed- but rains in the southern plains will slow progress this week. Topics: - Market recap - Oil prices - Fuel demand - Export update - USDA supply and demand report adjustments - Reports to watch ----- Find more agriculture news: brownfieldagnews.com See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.