TFM Morning Update 06-09-2023

CORN

Corn is trading lower this morning as forecasts predict that a front will move through the Midwest bringing showers to most areas.
Today’s WASDE report will be released at 11 central and traders are expecting old crop ending stocks to rise slightly and for exports to drop.
US corn crops in drought areas jumped to 45% with corn crops experiencing moderate drought rose by 11% from the previous week.
Brazilian corn production has been estimated higher by Bloomberg around 130.3 mmt, 4.7 mmt higher than the previous estimate.

Soybeans are trading higher across the board with gains in soybean oil and meal as well. Crude oil is also trading higher.
Helping soybeans and soybean oil is India cutting their palm oil imports in favor of soybean oil and sunflower oil, with imports of soybean oil jumping to 301,000 tons vs 262,000 tons last month.
Barge shipments on the Mississippi River fell for the week ending June 3 with soybean shipments down 26% from the previous week.
Today’s WASDE report will likely show a decrease in Argentinian production and US ending stocks may also be increased.

Wheat is mixed this morning with Chicago trading slightly higher but KC and Minneapolis down ahead of the WASDE.
HRW wheat conditions have improved significantly thanks to recent rains, but the good to excellent ratings are still at only 36%.
China will reportedly feed more wheat to animals after heavy rains damaged high quality wheat which could see their import demand for wheat rise.
Traders are expecting that Friday’s WASDE will show a jump in US winter wheat yields over last month’s USDA estimate.

Amanda Brill