USDA report surprises market with soybean acreage drop: Weekly Commodity Market Update for 7/4/23

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Brownfield's Weekly Commodity Market Update

This week, Will and Ben break down how USDA's 4 million acre drop in soybeans is impacting the market. ----- Market recap (changes on week as of Monday's close): - September corn down $.96 at $4.88 - December 2023 corn down $.95 at $4.93 - August soybeans up $.43 at $14.67 - November soybeans up $.54 at $13.77 - August soybean oil up 5.67 cents at 63.67 cents/lb - August soybean meal up $2.20 at $411.70/short ton - September 2023 wheat down $.97 at $6.41 - July 2024 wheat down $.81 at $6.91 - June WTI Crude Oil up $.70 at $70.24/barrel Weekly highlights: - US ethanol production was flat at 309 million gallons on the week. The 104.2 million bushels of estimated corn use is tied for largest volume of the calendar year. - The Quarterly Hogs and Pigs Report for June 1 reported a breeding herd at 99.6% of last year- a number stronger than anticipated. Lower farrowing intentions in the upcoming quarter were offset with higher pigs per litter. - US Ag Export Sales were up week over week for corn, grain sorghum, and wheats but down for the entire soybean complex. Everything was within trade expectations but on the lower end continuing a trend of sluggish export sales. - A Derecho hit approximately 10-12% of Midwest corn area on Thursday. - US Grain Stocks as of June 1 for corn, soybeans, and wheat all came in on the lower than expectations. US wheat stocks of 580 million bushels were bullish- falling below all expectations. - USDA’s 2023 Acreage Report provided multiple surprises to markets Friday none more consequential than a 4-million-acre reduction in US soybean acres compared to both the average trade guess and the March planting intentions report. - Open interest futures and options positions fell hard for most crops on the most recent week: Corn (-9.8%), Soybeans (-12.4%), Soybean Oil (-9.5%), Soybean Meal (-6.6%), and Rough Rice (-6.5%). Chicago wheats and cotton were flat and up 3.3%, respectively. - Managed money traders increased their net shorts of Chicago wheats, corn, and cotton while increasing their net longs of soybeans, soybean oil and rough rice. - AG export inspections were up week over week for corn, soybeans and wheat while down for grain sorghum, but all within expectations. Topics: - Market recap - USDA surprises in acreage report - USDA updates grain stocks - Derecho hits Midwest - 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.