GRAIN CALLS
Corn: 12 to 22 cents higher.
Soybeans: 18 to 26 cents higher.
Wheat: Little-changed to 7 cents higher.
GENERAL COMMENTS:
Corn, soybean and wheat futures rose sharply overnight as the markets extended yesterday’s rally on USDA’s lower-than-expected acreage estimates. The acreage figures put greater focus on summer weather, especially the dry areas in the northern and northwestern Corn Belt.
USDA’s crush report today is expected to show about 173.4 million bu. (5.202 million short tons) of soybeans crushed during May, based on a Reuters survey of analysts. That would be up from April’s crush of 169.8 million bu. but down from last year’s 179.5 million bu., with tight supplies and high soybean prices curbing processing to some degree.
Ukraine’s 2021 grain harvest could climb to a record 75.8 million metric tons (MMT) this year, a 10.8-MMT boost from the 2020 season, according to the country’s state weather forecaster, Tetyana Adamenko, citing improving weather. That could include 37.1 MMT of corn, 28.5 MMT of wheat and 8.3 MMT of barley, she details.
India announced Wednesday it will permit the import of refined palm oil for six months. The country had restricted imports of refined palm oil in January 2020 to help local refiners and oilseed producers. The country also lowered the import duty on refined palm oil to 41.25% from 49.5% for three months.
In overnight export news, Turkey provisionally purchased an estimated 395,000 MT of wheat in an international tender. Tunisia’s state grains agency bought around 100,000 MT of soft milling wheat and 100,000 MT of animal feed barley.
CORN: December corn futures gapped higher overnight and climbed as high as $6.11 1/4, the highest price since $6.19 3/4 on June. USDA’s Acreage Report is forcing a recalibration of the markets’ summer outlook and underscores concerns over persistent dryness in the northwest Corn Belt. In its report yesterday, USDA pegged U.S. corn plantings a 92.692 million acres, more than 1 million acres below expectations.
In USDA’s weekly export sales report today, the agency reported net corn sales of 15,000 MT for the week ended June 24 for 2020-21, down 93% from the previous week and down 94% from the prior four-week average. For 2021-22, net sales totaled 67,600 MT.
SOYBEANS: Lower-than-expected USDA acreage figures are also fueling a push to revisit early-June highs in soybean futures. November soybeans rose as high as $14.23 overnight, the highest intraday price since $14.30 1/2 on June 14. USDA today reported net soybean sales of 92,800 MT for 2020-21 for the week ended June 24, down 35% from the previous week but up 62% from the prior four-week average. Sales of 1.67 MMT for 2021-22 were led by Chinese purchases of 1.147 MMT.
WHEAT: USDA’s acreage report was deemed largely neutral for wheat, though futures are gaining a boost from strength in corn and soybean markets. USDA reported net 2021-22 U.S. wheat sales of 226,300 MT for the week ended June 24, at the low end of trade expectations for 200,000 to 500,000 MT.
CATTLE: Steady to weaker
HOGS: Steady-mixed
CATTLE: Feeder cattle futures may face continued pressure from a renewed rally in corn prices, while live cattle may hold within the range from the past couple weeks as traders eye cash markets. Live steers averaged $123.82 in five top U.S. cattle markets yesterday, down from last week’s averaged of $125.47. Choice cutout values averaged $291.29, down $1.05.
Weekly beef export sales of 12,100 MT were down 28% from the previous week and 17% from the four-week average. China bought 2,100 MT of beef during the week and took shipment of 4,200 MT.
HOGS: Hog futures may gain support from a bounce in cash markets yesterday. Carcasses on daily direct markets averaged $113.02, up $2.39 from the previous day but down from $116.89 at the end of last week, according to USDA. Pork cutout values averaged $113.84 yesterday, down 38 cents for the day but up from $110.04 at the end of last week. Slaughter so far this week at 470,000 head trails last week at this point by 6,000 head.
Weekly pork export sales of 28,600 MT were unchanged from the previous week but up 12% from the four-week average. China bought 1,500 MT of U.S. pork and took shipment of 5,100 MT.