Grain > Commentary > 6-28-2023

6/28/2023

Jun 28, 2023

6/28/2023
Another day of hard liquidation as rain and extended weather forecasts continue to pressure the markets.  It is probably safe to assume that funds have now flipped themselves from long to short.  We had a good rally that provided opportunity at profitable levels for the 2023 crop and think our customers did a great job making cash new crop sales and placing hedges.  In total, we handled slightly over one million bushels of 2023/24 crop during the 4-day rally.  What became evident with basis, regardless of delivery period, is that trade was more focused on supply and had almost completely forgotten about demand.  The USDA did announce the sale of 170.7k tonnes of corn for delivery to Mexico this morning with 21k tonnes to be delivered in 2022/23 and 149k delivered in 2023/24.  This was the first flash sale of corn since mid-May.  Weekly ethanol data showed production unchanged at 1.05 million barrels/day and stocks increasing by 175,000 barrels to 22.98 mln bbls.  With just two months remaining in the marketing year, corn use for ethanol trails the pace to meet the USDA number by 47 million bushels.  With the sharp sell-off in futures this week, we now have room on the board for a friendly reaction to Friday's reports.

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9/11/2026
Sep 11, 2026
It is USDA report day and it seemed like one of the most important reports we have had in a while.  The USDA placed corn yield at 178.5 bpa vs an average guess of 178.2.  They were in line with expectations and admitting we have an issue brewing.  This likely won’t be our lowest yield we see, but it at least drew a line in the sand for a starting point. 
7/10/2026
Jul 10, 2026
USDA report day was slightly friendly to the grain markets.
Corn:
25/26 corn carryout was pegged at 2.020 billion bushels vs an average guess of 2.073 billion.  The main changes to this year’s balance sheet had feed and residual usage up 150 million bushels while they decreased ethanol by 25 million bushels.  Corn Yield for next year was estimated at 183 bushel per acre, which was about as expected. 
6/11/2026
Jun 11, 2026
The USDA report was noneventful and now we wait for the stocks and acres report on June 30th.  25/26 corn carryout was estimated at 2.145 billion vs an average guess of 2.138 billion.  26/27 corn carryout was estimated at 1.960 billion vs an average guess of 1.947 billion. 26/27 World corn carryout was estimated at 281.22 Million Tonnes vs an average guess of 278.51.  That is up 4 Million Tonnes from the May USDA report.