Soy, wheat markets higher before USDA report

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Corn futures are trading mixed to mostly lower as of 6:45 a.m. CDT. USDA will release its Supply/Demand report at 7:30 a.m. CDT in which they will update old-crop estimates and release June 2012/13 estimates. The report is expected to show a cut in 2011/12 ending stocks by about 30 million bushels to 821 million. Ending stocks for 2012/13 are likely to be down nearly 131 million bushels at 1.750 billion, below the May forecast of 1.881 billion bushels.

Soybean futures are trading 7 to 11 cents higher as of 6:45 a.m. CDT. USDA will release its Supply/Demand report at 7:30 a.m. CDT in which they will update old-crop estimates and release June estimates for 2012/13. Soybean prices have been pushed up by expectations for a bullish report. The trade is looking for a decrease to 189 million bushels for 2011/12, down from 210 million in the May report. Carryout for 2012/13 is expected to be lower at 143 million bushels, down from 145 million bushels in the May report.

Wheat futures are trading 3 to 7 cents higher as of 6:45 a.m. CDT. USDA will release its Supply/Demand report at 7:30 a.m. CDT. The average of analyst’s new-crop forecasts peg production at 1.639 billion bushels, down from 1.694 billion in May. This decrease in production can be attributed to a rising hot temperatures that added a lot of stress to the hard winter wheat crop during May. Production estimates for the winter wheat crop is expected to decline to 991 million bushels for June 2012/13, down from 1.032 billion estimated for May.

Cattle futures are called to open lower. Cattle futures are expected to open the session lower on profit taking and undeveloped trade in the cash market. However, prices should recover on steady to higher beef prices. Both choice and select cuts were reported up 75 cents to $1.

Lean hog futures are called to open lower. After closing the previous day higher despite weakness in outside markets; hog futures are expected to open lower on profit taking. Prices will see support from strength in pork prices. The pork cutout value is currently reported at $87.26, its highest since mid February. Look for strength in the cash market, firm exports and tightening supplies to lend support to hog futures.

Cotton futures are trading mixed as of 6.45 a.m. CDT. USDA will release its Supply/Demand report at 7:30 a.m. CDT. The report is expected to increase U.S. and world estimates for cotton. Last month’s report pegged world ending stocks at a record 73.75 million bales. World stocks have been steadily increasing since and are expected to be raised again.



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