Futures Close Report: 31st June 2017

All markets considerably firmer following Fridays USDA quarterly stocks and acres.

USDA  Stocks:

• US Corn  – 5.25 Bln Bushels – (above trade estimates 0f 5.123);
• US Soybeans 0.963 Bln Bushels (below trade estimates of .983);
• US Wheat 1.184 Bln Bushels ( above trade estimates of 1.137).

Planted Acres:

• Corn 90.886 million acres – above trade estimate of 89.903 million;
• Soybeans 89.513 million  below trade estimate of 89.750 million;
• Wheat 45.657 million  well below trade estimate of 46.07 million.

US Wheat plantings numbers at a record low as high global stocks and low export potential pushed US farmers to other alternatives.  Supplies for all three commodities remained robust, with stocks of both corn and soybeans as of June 1 the third-biggest ever for the period. Wheat stocks as of June 1 were the largest in 29 years.  US Market flurry likely compounded by the 4th July national holiday this week as markets assessed the report and covered in short positions, particularly in view of the ongoing weather markets.

Consultancy Strategie Grains reduced its monthly outlook for this year’s rapeseed crop in the European Union by 200,000 tonnes to 21.12 million tonnes after a recent hot spell hit some Northern European countries.  However, the revised figure is still some 4.2% higher than last year.

FranceAgrimer – estimates that French wheat is 65% good / excellent down from 68% last week.   Harvest progress put at 4%.