FI Morning Grain Comments 06/30/23

Jun 30, 2023







PDF attached

 

Good
morning.

 

USDA
reported 132,000 tons of new crop soybeans sold to China.

 

WTI
crude oil is higher and USD is lower. The CBOT agriculture markets are higher pre-USDA report after a derecho swept across the Midwest on Tuesday. Wind gusts upwards of 100 mph may have damaged some crops. This would have been much more destructive if it occurred
later in the season, in our opinion.

 

A map of a storm Description automatically generated with low confidence

Fox
news

https://www.foxweather.com/weather-news/chicago-midwest-severe-weather-air-quality-june-2023

 

Expiring
July contracts for the soybean complex are firm. There was talk of US crushing downtime for next month and August. Meanwhile, a Reuters poll calls for the May Us crush to end up near 5.693 million short tons, or 189.8 million bushels, up from the 187.0 million
bushels in April and 180.9 million bushels May 2022. (188.0-191.0 range).  Soybean oil stocks as of May 31 were estimated at 2.437 billion pounds, down 2.540 billion pounds at the end of April but above 2.384 billion pounds at the end of May 2022. (2.400-2.500
billion range). There were some soybean oil and wheat deliveries overnight. Grain futures are higher on positioning and potential US weather damage. Offshore values were leading SBO higher by about 150 points this morning (66 higher for the week to date) and
meal $0.70 short ton lower ($21.50/ton lower for the week).

 

Fund
estimates as of June 29 (net in 000)

 

 

 

 

Weather

7-day

A map of the united states Description automatically generated with medium confidence

 

A map of the united states with blue and green dots Description automatically generated with low confidence

 

World
Weather Inc.

WORLD
WEATHER HIGHLIGHTS FOR JUNE 30, 2023

  • Beneficial
    rain fell in a part of the central Midwest overnight with parts of central Illinois into southwestern Indiana receiving more than 1.00 inch of rain; some excessive rainfall of multiple inches impacted southwestern Indiana
  • A
    derecho impacted the Midwest Thursday coming out of Nebraska and far northeastern Kansas to northern Missouri, southern Iowa and parts of Illinois and Indiana
    • Some
      crop damage resulted, but the assessments are just beginning; the losses should not be as great as 2020, but it will contribute to the already smaller 2023 drought impacted corn crop
  • Waves
    of rain will continue to impact the Midwest through the next week to ten days with some of the greatest rain occurring this weekend and early next week