July Corn futures closed 12 cents higher on the day, but the SEP contract lost a quarter, and the DEC contract closed 27.5 cents lower. USDA affirmed very tight old crop stocks as of June 1 in their grain stocks report at 2.764 billion bushels vs. the average pre-report guess of 2.862 billion bushels. The acreage report was about as bearish as anyone would have expected for new crop. With an official estimate of 97.379 million acres, today’s planted acreage estimate was larger than the March planting intentions estimate. That number has been the dominant influence on price action since the report came out. The report shows NE and TX each gaining more than 300,000 acres compared to the earlier reported intentions. The IA and ND estimates each lost 200,000 corn acres from the March intentions. In the CFTC commitment of traders report released this afternoon, managed money accounts decreased their net long position in corn, by a net change of 3,704 more shorts in the reporting week ending Tuesday.
|Jul 13 Corn closed at $6.79 1/4, up 12 cents,|
|Sep 13 Corn closed at $5.47 1/4, down 25 cents,|
|Dec 13 Corn closed at $5.11, down 27 1/2 cents|
|Mar 14 Corn closed at $5.21 3/4, down 27 1/2 cents|
Soybean futures closed mixed after bouncing around wildly immediately following the report. August soybeans saw a 35 cent trading range in the first 10 minutes after the report was released. The old crop ended the day 16 cents higher, but new crop November was down more than 23 cents on the day. Pre-report trade ideas for the Planted Acreage report were centered around 77.811 million acres (ma), and the report said farmers planted or intended to plant 77.728 million acres. Missouri was reported to have gained 400K acres of soybeans since the March intentions report. The biggest loser of soybean acres was North Dakota, dropping 500K acres. The average trade estimate for US June 1 soybean stocks was 447 million bushels, and the USDA estimate was smaller, at 435 million bushels. This is the tightest June 1 stocks number since 2004. In the week after this report in 2004, July beans rallied more than 80 cents per bushel, peaking on July 7, but if the cash price for your old crop beans is priced against the August contract, a rally in the July contract doesn’t help as much as a local basis push. In the CFTC commitment of traders report released this afternoon, managed money accounts decreased their net long position in soybeans, by a net change of 6,008 more shorts.
|Jul 13 Soybeans closed at $15.64 1/2, up 16 cents,|
|Aug 13 Soybeans closed at $14.31, down 1 1/2 cents,|
|Sep 13 Soybeans closed at $13.03 1/4, down 14 1/2 cents,|
|Nov 13 Soybeans closed at $12.52, down 23 1/4 cents,|
|Jul 13 Soybean Meal closed at $490.30, up $10.70,|
|Jul 13 Soybean Oil closed at $46.42, up $0.02|
Wheat futures finished the day lower on the day. Minneapolis wheat only ended a penny and a half lower, but Chicago wheat was down 15 cents and KC wheat was a dime lower. The average pre-report trade guess for June 1 stocks was 745 million bushels, and the USDA indicated that there were 718 million bushels available on that date. The trade was looking for spring wheat acreage of around 12.1 million this morning, but the USDA report showed 12.3 million acres planted to spring wheat. Planted acres for all wheat were estimated by the USDA to be 56.5 million acres, compared to the average pre-report trade guess of 55.830 million acres. In the CFTC commitment of traders report released this afternoon, managed money accounts decreased their net short position in Chicago wheat, by a net change of 10,111 longs.
|Jul 13 CBOT Wheat closed at $6.48 1/2, down 15 cents,|
|Jul 13 KCBT Wheat closed at $6.76 1/4, down 10 1/4 cents,|
|Jul 13 MGEX Wheat closed at $7.85, down 1 1/2 cents|