Market Minute 7/2/20

On Tuesday, the USDA came out with the June 30^th Grain stocks and acreage report. This report has historically been a market mover, and this year’s report was no different.

The big shocker was in the acreage report as acres planted to principal crops were down over 7.0 million acres from the March seeding report, with corn down 5.0 million to 92.0 million acres. Wheat acres were down 400K, with the majority of that in spring wheat, but winter wheat was off as well. Additionally, bean acres were only up 300K.

Corn stocks were much higher than expected at 5.224 billion bushels, while beans stocks were pretty much at the number at 1.386 billion. Wheat stocks were also a bit higher than anticipated at 1.044 billion bushels.

Implied feed usage was at 791 million, down 29% from last year’s levels.

Overall, this report had a very positive impact on the markets. The focus will now shift onto the upcoming weather over the weekend.

Have a great 4^th of July weekend.

Posted on Jul 02 at 15:05