This week there are 4 key reports to watch that could have significant impacts on commodity markets the week of June 25, 2023. This Farms.com column tracks key events in commodity marketing impacting the agriculture industry! The series of article shares issues to watch the following week, issues that may have an impact on commodity prices in the coming weeks.
By Colin McNaughton
Farms.com Risk Management Intern
- Released on Monday, June 26th, the USDA crop progress report will show further drops in U.S. corn and soybean crops as it remained dry the past week.
- Each of the USDA grains inspected for export report, USDA weekly export sales report, and the EIA ethanol data will be released as per their regular schedules. Their respective release dates are Monday, June 26th, Wednesday, June 28th, And Thursday, June 29th. The Most recent grains inspected for export report showed no shift in momentum in hopes of pushing back to last years numbers. Corn inspections totalled 31.9 mmt compared to 46.2 mmt compared to this time last year. Total grains inspected came in at 83.3 mmt compared to 104.6 mmt last year, increasing the spread between the two totals from last week.
- As June comes to an end, USDA will be releasing the 2023 June Acreage report on Friday, June 30th as well as the quarterly grain stocks report. With funds beginning to panic in the markets this week, with corn making a 30+ cent move on Wednesday, these reports can be market moving. In March, corn plantings were estimated at 92.0 million acres, 87.5 million acres for soybeans, and all wheat planting estimates stood at 49.9 million acres. There were some PP (prevent plant acres in the Dakotas but for the most part the trade does not look for any big surprises in total acres. However, drought conditions have worsened significantly from when these estimates were made at the end of March, so higher planted acres will not save the day.
- As drought continues to be the focus of the market, the U.S. drought monitor map will be updated on Thursday, June 29th. The recently updated map showed further deterioration throughout the “I” states” yet again. 83% of Iowa is now suffering from at least D1 drought conditions, up 15.5% from last week. Wisconsin is now 100% engulfed by D0 conditions and had a 30% increase in their D1 conditions! However, other areas did see some relief. Kansas, who is bearing the worst of this drought, stands at 7.7% D4 conditions, down from 13.8% last week. Next weeks monitor map update could see some improvements with rains forecast from June 25th to the 29th but ½ to ¾ inch rains in 90+ degree weather does very little.
For daily information and updates on agriculture commodity marketing and price risk management for North American farmers, producers, and agribusiness visit the Farms.com Risk Management Website to subscribe to the program.