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USDA released it June report update 


Initial reaction:

Bearish soybean oil and wheat.  Bull spreading corn justified with change in 2019-20 and 2020-21 US ending stocks. 


USDA NASS and OCE executive summaries






  • USDA increase 2020 US wheat production by 27 million bushels by increasing HRW by 25 million and winter white by a small amount. 
  • US all wheat ending stocks were taken up 16 million bushels to 925 million, 6 percent below 2019-20. 

·         US 2019-20 corn ending stocks came in 47 million bushels below trade expectations at 2.103 billion, 5 million above the previous month, promoting bull spreading. This is because new-crop US corn stocks of 3.323 billion ended up 37 million bushels below an average trade guess.  US corn for ethanol for 2019-20 was

·         US new-crop (2020-21) soybean oil stocks were upward revised 135 million pounds, the biggest surprise in this report, in our opinion.  USDA took the 2019-20 soybean crush up 15 million bushels and to compliment new-crop, they raised 2020-21 US crush by 15.  This added a combined 285 million pounds of soybean oil to supply.  At 2.0 billion pounds ending stocks for 2020-19 and 2019-20 stocks forecast at 1.940 million, soybean oil prices fell further late this morning.  USDA increased 2019-20 US soybean oil exports by 150 million pounds and raised new-crop exports by 100 million.  Biodiesel was again cut by USDA for 2019-20, this time by 100 million pounds to 7.500 billion, too low in our opinion. 

·         US soybean stocks for 2019-20 were near expectations and new-crop were reported 31 million below the trade guess. USDA lowered 2019-20 US soybean exports by 25 million to reflect higher Brazilian exports. 

·         There was no change in soybean meal stocks by USDA increased domestic use for 2019-20 by 400,000 short tons and raised new-crop by 300,000 short tons. 

·         2019-20 world ending stocks for corn and soybeans tightened slightly, and world wheat was up slightly.  USDA took 2019-20 Brazil soybean exports up 1 million tons to 85 million tons. 

·         New-crop world wheat stocks increased 6.0MMT to 310 million, 6.8 percent higher than end of 2019-20.  India’s wheat production was upward revised a large 4.2 million tons to 107.2 million tons, and if the government provides an incentive for exporters, India could easily contribute to the world trade. 


Price outlook:

·        July corn is seen in a $3.20 and $3.40 range.  December lows could reach $2.90 if US weather cooperates. 

  • July soybeans are seen in a $8.44-$8.85 range. 
  • July soybean meal is seen in a $280 to $310 range. 
  • July soybean oil range is seen in a 26.75 to 28.25 range. 
  • Chicago July is seen in a $4.80-$5.05 range
  • KC July $4.35-$4.65
  • MN July $5.00-$5.25 



Terry Reilly

Senior Commodity Analyst – Grain and Oilseeds

Futures International │190 S LaSalle St., Suite 410│Chicago, IL  60603

W: 312.604.1366


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