Associated Press writer Scott McFetridge reported on the front page of Saturday's Des Moines Register that, "A long stretch of hot, dry weather has left the Mississippi River so low…
Reuters writer Julie Ingwersen reported on Friday that, “U.S. soybean futures surged about 6% on Friday after the U.S. Department of Agriculture (USDA) reported much lower-than-expected 2023 soy plantings and June 1 inventories, while corn futures tumbled on larger-than-expected acreage.”
“Soybean futures soared after the USDA said U.S. farmers planted 83.5 million acres of the oilseed, down 4 million acres from the government’s March forecast and below the lowest in a range of analyst estimates.
“The reduced acreage implies smaller new-crop supplies of the oilseed,” the Reuters article said.
Ingwersen added that, “For corn, the USDA’s plantings estimate of 94.1 million acres was up more than 2 million acres from its March forecast and topped the range of analysts’ pre-report estimates.
“Coupled with crop-boosting rains crossing Iowa and Illinois on Friday, the data pointed toward a larger corn crop and renewed questions about demand for the yellow grain. As a result, new-crop December corn futures dropped below $5 a bushel for the first time in a month.”
Also Friday, Dow Jones writer Kirk Maltais reported that, “Grain traders were surprised by the results of the USDA’s acreage reports, suggesting a healthy spring helped bolster corn planting while stifling heat and dryness in June impaired soybean planting.
“The figures now make the daily weather forecast less of a market mover.”
The Dow Jones article noted that, “‘These numbers are a game changer for the markets,’ said Arlan Suderman of StoneX in a note. ‘The planted acreage numbers will be debated, but this is what the market will trade.’
As we approach a critical time for corn tasseling and pollination, short-term outlooks into mid-July show elevated chances for cooler/wetter conditions across the Corn Belt. This is a welcome pattern shift given June's rapid drought expansion. (2/2) #IowaAg #IowaClimate #grow23 pic.twitter.com/kXjNn7fEzz— Justin Glisan (@JustinMGlisan) July 1, 2023
“Suderman added that supply for soybeans now has no ‘margin of error,’ while corn has some leeway for tough weather conditions.”
Elsewhere, Reuters writer Guy Faulconbridge reported late last week that, “Russia said on Friday it saw no reason to extend the Black Sea grain deal beyond July 17 because the West had acted in such an “outrageous” way over the agreement, but assured poor countries that Russian grain exports would continue.”
And Reuters writer Sybille de La Hamaide reported on Friday that, “The European Commission on Thursday sharply cut its monthly forecast for this year’s cereals harvests in the bloc with usable production of common wheat now seen 2.6 million tons lower than last month at 128.9 million metric tons.”