Corn, soybeans and wheat all pour into red Friday
The US EPA is looking for ways to provide relief to oil refiners who say they are under pressure because of current biofuel blending mandates. RIN credits are currently trading at record highs. Fears of loosening these mandates pushed grain prices up on Friday, especially soybean oil futures, which saw a limited decline. Soybean prices also fell 2%, as did nearby corn contracts. Wheat losses were variable, ranging from 0.4% to 1.9% after a turbulent session today.
Drought-affected areas of the Dakotas and western Iowa may continue to see some relief from the rains between today and Monday, with the latest NOAA 72-hour cumulative precipitation map predicting up to 1 “in some areas over the next three days. The agency’s 8-14 day outlook calls for a return to dry weather for the Midwest and Plains between June 18 and June 24, with warmer than normal temperatures also in the photo.
On Wall St., the Dow Jones slipped 36 points in the afternoon to 34,429. Investors remain cautious that inflation is moving at its fastest pace since 2008. “Memes stocks” were some. little recovered after suffering heavy losses yesterday. Energy prices were mixed. Crude oil rose 1.25% on optimistic demand, topping $ 71 a bushel. In contrast, gasoline and diesel each fell by around 1.25%. The US dollar strengthened moderately.
On Thursday, commodity funds were net buyers of corn (+10,000) and CBOT (+500) wheat contracts but net sellers of soybeans (-6,500), soybean meal (-4,000) and soybean oil (-2000).
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Corn price faded by around 2% amid concerns over possible changes to the EPA’s biofuels mandate, which kicked off a series of technical sales and an overall choppy session today. July futures fell 14 cents to $ 6.85, September futures fell 8.5 cents to $ 6.2975.
Core corn offerings fell 4 cents at an Iowa processor on Friday, but were flat elsewhere in the central United States today.
IHS Markit Agribusiness has lowered its forecast for planting corn in the United States in 2021 from an estimate of 96.849 million acres in May to 96.539 million acres. That’s still significantly higher than the USDA’s March planting intentions report, which forecast 91.144 million acres. The agency will update this issue on June 30.
Yesterday, NOAA released a report expressing concerns about “expanding drought and heat” in the upper Midwest. D2 (severe drought) condition levels extend across parts of Michigan, Wisconsin, northern Illinois, Iowa, and Minnesota. “NOAA’s near-term outlook for June 18-24 calls for continued hot and dry conditions in the Midwest, which will continue to dry out soils and make drought problems persist or potentially worsen in the Upper Midwest. “, according to a press release from the agency.
The French agricultural office FranceAgriMer reports that 91% of the country’s corn harvest is classified in good to excellent condition until June 7, unchanged from a week ago.
If you missed yesterday’s big WASDE report from the USDA, which offered a wealth of new data on supply and demand, Click here for our exclusive coverage and analysis of what happened.
Preliminary volume estimates were 510,541 contracts, sliding slightly below Thursday’s final tally of 567,470.
Soybean price stumbled through a choppy session and closed with significant losses after a series of technical sells on Friday. July futures fell 35.75 cents to $ 15.0825, August futures fell 27.25 cents to $ 14.8275.
Base soybean bids fell 27 cents at one Ohio river terminal, while they fell 2 to 5 cents at three other Midwestern facilities on Friday.
IHS Markit Agribusiness increased its estimates for 2,021 acres of soybeans in the United States from 88.485 million acres in May to 89.065 million acres. That’s well above the USDA’s March estimate of 87.6 million acres – that number will be updated on June 30.
Is it worth a closer look to compare current soybean prices with the bull markets of 2012 and 2008? Naomi Blohm, Senior Market Advisor at Stewart Peterson, dug into data from the latest Ag Marketing IQ blog – Click here to learn more.
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And if you haven’t been there www.FarmFutures.com in a few days, our Friday feature, “7 Farming Stories You May Have Missed This Week,” is a good way to catch up quickly. The latest batch of content includes a possible GMO ban in Mexico, a Texas update on the battle against feral pigs, possible updates to the EPA’s controversial Waters of the US rule, and more. Click here to begin.
Preliminary volume estimates were for 313,673 contracts, slightly exceeding Thursday’s final tally of 302,247.
Wheat prices suffered moderate to large losses on Friday, with lowland rains in the near-term forecast triggering technical sales. September Chicago SRW futures fell 4.5 cents to $ 6.8525, September Kansas City HRW futures fell 4.5 cents to $ 6.44 as well, and wheat futures fell 4.5 cents to $ 6.44. September’s MGEX spring prices have eroded 16.75 cents to $ 7.65.
Following IKAR’s lead earlier this week, Russian consulting firm Sovecon raised its forecast for the country’s 2021 wheat production by 1.9% to 3.028 billion bushels, largely on the back of the improvement of the quality of harvests in the production regions of the south of the country. Russia is the world’s largest exporter of wheat.
In France, the grades of soft wheat have improved by one point to reach 81% of good to excellent conditions, according to the agricultural office FranceAgriMer. This is also a marked improvement over the same period a year ago when only 56% of the country’s soft wheat crop was classified in good to excellent condition.
A South Korean feed group bought 2.4 million bushels of wheat for feed from optional sources in a tender that closed earlier today. The grain is shipped between July and August.
Preliminary volume estimates were for 142,588 CBOT contracts, falling slightly below Thursday’s final tally of 199,061.
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