Chicago Agriculture Commodities Finished Higher Overall
$WEAT, $CORN, $SOYB
Corn futures climbed above 4 a bu for the 1st time since January after the US Department of Agriculture (USDA) estimated Y 2015 planted Corn acreage at its lowest mark in 5 years.
Sept. Corn traded at 4.0625 bu, up 14 cents, or 3.7%, on the Chicago Board of Trade, prices have not settled above $4 since mid-January.
Traders are factoring in reduced yields due to weather, so reduced acreage is almost a double whammy for Corn markets.
Corn planted in Y 2015 is estimated at 88.9-M acres, down 2% last year. That would be the lowest planted agriculture acreage in the US since Y 2010, according to the USDA’s acreage report issued Tuesday.
Corn stocks, meanwhile, totaled 4.45-B bu on 1 June 2015, according to the USDA’s grain stocks report, which was also released Tuesday. That is up 15% from the same frame a year ago.
Overall, the agriculture grain markets have reacted positively to the USDA data because stocks and plantings were below expectations for Corn and Soybeans, while the Wheat markets are weather driven right now.
Sept. Wheat was up 12 1/2 cents, or 2.1%, to $5.96 bu
Nov. soybeans added 43 cents, or 4.4%, to $10.23 bu
Soybean planted area for this year was estimated at a record high of 85.1-M acres, up 2% from last year, the USDA said. Soybean stocks totaled 625-M bu on 1 June, up 54% from a year ago.
All Wheat planted for Y 2015 was estimated at 56.1-M acres, down 1% from last year, while stocks totaled 753-M bu on 1 June, + 28% from a year ago.
It is too wet in the United States and too dry in Canada and parts of Europe, which is creating quality issues across global Wheat markets.
The report has not dampened recent investor beliefs that agriculture grain markets may potentially be finding support after a multi-year Bear market due to near-perfect weather patterns in Y’s 2013 and 2014.
Stay tuned…
HeffX-LTN
Paul Ebeling
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