Grain Markets Negatively Impacted by Today’s Report

The National Ag Statistics Service (NASS) issued two major reports this morning. The June Quarterly Grain Stocks report measures grain in all positions as of June 1^st. It is used to gauge both on farm and commercial inventory of corn, soybeans, and wheat. Due to the reports only being released quarterly, expectations are often quite variable which leads to a volatile trade. The Planted Acreage report indicates the amount of acres planted to principal crops and is based on surveys taken in late May and early June. Below are summaries of both reports.

Quarterly Grain Stocks

Corn stocks reported at 3.8 billion were above the average guess but within the range of expectations. Soybean stocks were reported at 405 million bushels which was slightly higher than pre-report estimates.

Market Reaction: Negative for both commodities.

Planted Acreage

Corn planted acreage was reported at 91.6 million acres which was slightly below pre-report estimates at 91.7. This total is the smallest number since 2010, but still the 5^th largest since 1944. Soybean acres were a massive 84.8 million acres, well above pre-report estimates at 82.2. This total is easily a new record for soybean acres, some 7 million higher than the previous record. The number is up 11% from a year ago and reflects higher soybean prices through the spring and wet weather during planting, which may have pushed some corn acres to beans. The USDA is expecting record soybean acreage in MI, MN, NE, NY, ND, OH, PA, SD, and WI.

Market Reaction: Negative for both commodities

At 11:43 a.m. New Crop corn is down -19 ½  and soybeans are down -60.

For more information contact:

Greg Mockenhaupt

Risk Management Consultant

Central Valley Ag – ProEdge

1007 County Road O

Oakland, NE 68045

Office: 402-685-5613

Cell: 402-380-9855