TFM Midday Update 06-20-2023

CORN

Corn gapped higher on last night’s open but faded after that as funds began taking profit and producers made cash sales, and Dec corn is sitting just slightly higher at midday.
Rain over the weekend was limited and spotty, but the southwestern Corn Belt had better chances and more coverage. The 5-day forecast shows very light rainfall for the I states.
Today’s Crop Progress report will be released at 3pm central and is expected to show worsening conditions. Last week’s good to excellent rating was 61% which was already worse than 2012 for that time of year.
July corn futures in Brazil fell yesterday by 1.7% despite areas of Parana that may have been hit by frost, and the crop overall appears to be doing well.

Soybeans gapped higher along with corn last night but then faded along with both soy products. The soy complex has since turned higher with July beans and soybean meal leading the way.
Rainfall over the weekend was spotty with Iowa, Illinois, and Indiana missing out on important rains, but soybeans are not in the danger zone yet and have plenty of time to wait for rains.
Some support is coming from Secretary of State Anthony Blinken’s visit to China to meet with President Xi Jinping which apparently went well and soothed tensions.
The EPA is slated to make their announcement regarding renewable diesel mandates tomorrow which could have a big impact on profitability.

Wheat is mixed with Chicago and KC trading higher but Minn lower. Wheat growing areas have benefitted from better weather than corn and soybeans for the most part.
The winter wheat harvest was seen at 8% complete last Monday and is still underway, but recent rains may have slowed progress.
Spring wheat areas have been a bit drier and today’s Crop Progress report may show a decline in good to excellent ratings from last week.
Russia’s spring wheat areas and northern Europe remain in need of rains, while in Canada parts of Alberta and Saskatchewan received heavy rains over the weekend.

Amanda Brill