Grain Exchange – 6/18/2020
Corn is trading higher today with concerns of hot and dry weather. Rain is forecasted for the next couple days but some of the models are backing off on the amounts. They are also predicting hot weather the last week of June. Ethanol production continues on an upward trend, with 841,000 barrels produced last week; a .5% increase from prior week. We are down 22% from a year ago. Fuel demand and ethanol production seem to be leveling off but blending rates remain strong. Weekly export number was on the low side. Chinese corn demand has been weak, they would need to purchase 10 million bushels every week until end of year to meet phase 1 targets.
Soybeans are higher. Export sales were large with confirmation of the Chinese buying. China committed to buying 1.65 billion bushels in 2020. The U.S. would need to load out 31.2 million bushels per week to meet that level. Currently we are averaging 11.7 million bushels to China 22 weeks into the year.
Wheat is down a couple cents. Wheat futures put in an eight month low yesterday. US winter wheat harvest is picking up pace. Weekly export sales were toward the high end of estimates.
The market is going to closely watch the weather the next couple weeks. Keep talking to you grain market specialist on your price goals and updating your marketing plan.
Keep the faith and stay safe.
Have a great day!