CBOT Closing Comments
Soybeans
July soybeans closed at $11.79, down 34 ¾ cents, finishing the week 67 cents lower than last week. November beans finished at $10.06, down 37 ½ cents. This could be the beginning of the end for beans, certainly for new-crop beans. Informa Economics today project that the coming season's US soybean acreage will be 78.869 million acres, that's up sharply from the USDA's March estimate of 76.0 million and last year's acreage of 75.7 million. Allendale concur, coming up with a figure of 78.484 million, either figure would be a new record. Allendale say that their figure is due to some switching from corn and spring wheat, but principally double-cropping with winter wheat. The USDA are out with their official estimate on June 30th.
Corn
July corn closed at $3.99 ¼, down 4 cents, finishing the week 26 cents lower than last week. Allendale say that corn will decline just 211,000 acres from USDA’s March estimate of 84.986 million, Informa say corn acreage will come in at 83.111 million, a much steeper drop of 1.875 million acres. That's a pretty wide disparity. Last month, Informa projected corn acreage at 83.9 million. Certainly a USDA number on 30th June close to Informa's would be bullish for corn. A weak dollar was supportive for corn today, although crude oil crashed below $70/barrel which gave a bit of bearish pressure.
Wheat
July CBOT wheat finished at $5.55 ¼, down 5 cents and 30 cents lower on the week. Harvest pressure and spillover weakness from beans had an influence today. Allendale see US spring wheat acres declining by 331,000 mostly due to flooding in North Dakota. Some foreign interest was seen for US wheat this week, with Iraq picking up 100,000 MT of US wheat and South Korea buying 22,400 MT, but more of these orders need to be picked up consistently now that the US harvest is underway in the top-producing winter wheat state of Kansas.
July soybeans closed at $11.79, down 34 ¾ cents, finishing the week 67 cents lower than last week. November beans finished at $10.06, down 37 ½ cents. This could be the beginning of the end for beans, certainly for new-crop beans. Informa Economics today project that the coming season's US soybean acreage will be 78.869 million acres, that's up sharply from the USDA's March estimate of 76.0 million and last year's acreage of 75.7 million. Allendale concur, coming up with a figure of 78.484 million, either figure would be a new record. Allendale say that their figure is due to some switching from corn and spring wheat, but principally double-cropping with winter wheat. The USDA are out with their official estimate on June 30th.
Corn
July corn closed at $3.99 ¼, down 4 cents, finishing the week 26 cents lower than last week. Allendale say that corn will decline just 211,000 acres from USDA’s March estimate of 84.986 million, Informa say corn acreage will come in at 83.111 million, a much steeper drop of 1.875 million acres. That's a pretty wide disparity. Last month, Informa projected corn acreage at 83.9 million. Certainly a USDA number on 30th June close to Informa's would be bullish for corn. A weak dollar was supportive for corn today, although crude oil crashed below $70/barrel which gave a bit of bearish pressure.
Wheat
July CBOT wheat finished at $5.55 ¼, down 5 cents and 30 cents lower on the week. Harvest pressure and spillover weakness from beans had an influence today. Allendale see US spring wheat acres declining by 331,000 mostly due to flooding in North Dakota. Some foreign interest was seen for US wheat this week, with Iraq picking up 100,000 MT of US wheat and South Korea buying 22,400 MT, but more of these orders need to be picked up consistently now that the US harvest is underway in the top-producing winter wheat state of Kansas.