by JOHN BANCROFT
Last week in Markets:
Corn, Soybean, and All Wheat stocks came in below the expected average but within the trade ranges
- Corn planted acres came in above trade expectations and the March Planting Intentions
- Soybeans planted acres came in below trade expectation but above the March Planting Intentions
- All Wheat planted acres came in above trade expectations and the March Planting Intentions
Market Reaction To-date: Based on the closing future July 3, 2013
- During the spring the planting challenges held the new crop prices up. The estimated large planted acres have put downward pressure on the prices.
- Looking ahead given the variable summer weather being experienced in the U.S. and Ontario, weather will continue to have an impact on the price movements.
- Over all the market is experiencing tight old crop supplies with an expectation of increased ending stocks in the coming year given the current estimated new crop acreage and yields.
- The Ontario Basis has been impacted by the lower Canadian dollar and the roll in futures months to September for corn and August for soybeans during the last week. The Canadian dollar has been pressured by a stronger US dollar.
- Ontario basis - Old crop corn basis currently is +60 to 70 cents per bushel; new crop corn – 70 cents per bushel; old crop soybeans + 1.60 per bushel; new crop soybeans – 15 cents per bushel
Next week on July 11, 2013 the monthly USDA World Agricultural Supply and Demand Estimates will be released.
Disclaimer: This commentary is provided for information only and is not intended as advice
Posted on:
July 3, 2013