6.10.22 Market Commentary
This week’s action:
Corn July up 45 @ 7.73
Corn Dec up 30 @ 7.20
Beans July up 48 @ 17.48
Beans Nov up 41 @15.68
KC Wheat July up 44 @ 11.65
Feeders Aug up .525 @ 174.025
Fats June up 2.75 @ 136.00
June Hogs down 2.275 @ 107.90
July Crude down .41 @ 120.41
Dec corn Feb 1 – today: $6.79
Dec corn since Russian invasion: $6.97
Nov beans April 1 – today: $15.05
July KC wheat since Russian invasion: $11.36
**We are about 85% through a typical corn seasonal sales time frame with about 30 days remaining.
**We are about 50% through a typical bean seasonal.
Here’s the quick rundown of the June WASDE: The report overall was neutral with minor changes made to all three commodities. Ending stocks for old crop were raised 45 million for corn, lowered 30 million for beans, and unchanged on wheat from last month’s report. For new crop ending stocks came in 73 million higher than the trade guess on corn, 28 million lower on beans, and 14 million higher on wheat. The increase in wheat production is surprising given the spring weather we’ve had across the plains and that could change next month as we get more harvested and have a better idea of what’s there. The report was most bullish for beans, but they appear to be lower on a chart-based correction after the last weeks run higher and could see a slightly bigger correction into next week and then potentially resume the rally.
It is June 10. Late June is typically when we see contract highs barring catastrophic summer weather.
5-day forecast is relatively dry with hot/humid conditions for most of the corn belt. Welcome to summer!
The national gas average keeps making all time highs. It is up 23 cents/gallon this week at $4.99 (Nebraska $4.68) and the diesel average is $5.75. Inflation continues to be a lead story as the Consumer Price Index released this morning hit 8.6% in May, which is the highest level since 1981. This will likely force the Fed to keep raising rates, even as the economy cools down. The stock market reacted negatively to this news with the major indices all down 2-3% this morning and being down over 5% for the week. July crude peaked at $123/barrel this week while July lumber slumped to contract lows at $550. It peaked in early March above $1,200. The commodity basket may be losing its sex appeal with investors as almost $1 billion left exchange traded funds in May. This is the largest exodus of cash in more than two years.
The US Supreme Court is close to announcing whether it will hear Bayer’s appeal of a case in which they were held liable for $25 million in damages to a man who blamed his cancer from exposure to Roundup. This decision could determine if thousands more cases can proceed.
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Testimonials are representative of all reasonably comparable accounts and are not indicative of future performance or success.
Matthew is a corn and soybean farmer from Aurora, Nebraska. Check out his video to learn more about his relationship with Tredas!
Nate started out with just a few acres of ground and has worked to build his farm for decades. For him, the growth was easy, but the marketing? Not so much. Nate loves the options his Tredas Consultant, Zane Abner provides.
Gary farms corn and soybeans when he’s not feeding cattle near Bertrand, NE. He goes into detail about what sets Tredas apart from other companies.
Rob has a long history of working with corn, soybeans & cattle. He loves the hands-off approach of partnering with Tredas and how the Team keeps him motivated to keep making sales.