Stanford Grain Company business hours are 7:30AM-4:00PM.
Stanford Grain will be closing at 2:00PM on Friday, June 25th for Deb & Chuck's Retirement Open House. If you need something after 2:00PM, please call my cell # at 217-871-6283. Brad New CBOT Daily Limits effective 5-1-21 Corn: 40 cents Beans: $1.00 Wheat: 45 cents
Retirement Open House For Deb & Chuck: Friday, June 25th from 2:00-4:00 Allin Twsp Building: 203 N. Blackstone Ave. Stanford IL 61774
Thursday Morning Comments-June 24
The commodities are lower this morning, as news that overnight rains fell in C NE and are moving into W IA this morning are weighing on futures. A wet forecast and technical selling is adding to the negative tone. (CZ21 futures are making new lows for the move). Forecasts indicate that most of the Midwest will get moderate to heavy rainfall the next 5 days. The exception will be the Dakotas, which are expected to see little rainfall and a return to hot temperatures by late next week. Extended weather models will be watched closely moving forward, as much of the crop starts to transition into pollination in July. Wednesday’s weekly EIA energy report showed an increase in last week’s ethanol production by 2.2% compared to the previous week. Ethanol inventories increased by half a million barrels but are not considered burdensome. U.S. gasoline consumption last week was 10% higher than a year ago and equal to the 2019 usage. Rumors circulated on Wednesday that China bought another 8 cargoes of U.S. new crop soybeans. This followed a flash sales announcement earlier that morning of 330,000 MTs of U.S. 21/22 soybeans to China- so market participants will look for additional sales announcements for confirmation. Rumor is, China is only at about 60% of their planned purchases for this round so traders are looking for more sales to show up in the coming days. Weekly export sales numbers this morning were in line with expectations for old crop and unimpressive for new crop. A more detailed breakdown is below for reference. Winter wheat crop harvest is beginning to advance in the U.S. and for the most part, yields are variable but trending towards better than average. In S. America, Brazil’s safrinha corn harvest is just getting started, but early yields are generally less than expectations. Dryness is expected to continue this week for central Brazil while southern Brazil should see another round of moderate rainfall. Dry conditions should continue to favor harvest progress in Argentina w/ their corn harvest estimated over 45% complete. The global market is starting to look forward to the next production season in S. America, as nearly all analysts are predicting a sharp increase in both corn and soybean production in Brazil and Argentina. One reason being a predicted return to more normal weather patterns and an end to this year’s drought. Projections are for elevated acreage, especially in Brazil, where the government is offering incentives to entice planting expansion. In regard to basis going home Wednesday afternoon, gulf corn was weaker. Export buyers continue to look at other origins as the U.S. remains priced out of the market. Barge freight was steady/softer. Processor basis was steady/lower as the huge CN/CU inversion pushes bushels into the market. Gulf beans were mostly steady late yesterday as was processor basis. Bean bids remain against the N, Q, and X, making cash bids hard to track.
Other headlines this morning: * July options expire tomorrow * Traders await next Wednesday’s reports * FND on July futures is also next Wednesday * Next Wednesday also brings month/quarter end * U.S. bean crop rating lowest since 2008 * New crop balance sheets to remain tight * FBN survey est. U.S. corn seeding at 92.9 mln. acres * FBN survey est. U.S. bean seeding at 87.6 mln. acres * Low waters still a logistical issue in SAM * Global trade drives ocean freight higher * Parts of Brazil fully depleted of soil moisture * Argentine corn $5-$10/mt under U.S. * Argentine crush at 75% of capacity