Market Movers to Watch for the Week of June 23rd 2024

Market Movers to Watch for the Week of June 23rd 2024
Jun 20, 2024

USDA’s much anticipated June Acreage and Grain Stocks report will be released on Friday June 28th

This week there are 5 key reports to watch that could have significant impacts on commodity markets the week of June 23rd, 2024. This 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 Devin Lashley Risk Management Intern

1. The USDA Crop Progress report will come out on Monday, June 24th and will likely show continued deterioration of U.S. 24/25 corn and soybean crop conditions. But it will remain above the 5-year average. The prevalent heat dome brought with it high temperatures, which would have impacted the developing young crops in many parts of the Eastern Corn Belt.

2. The U.S. Personal Consumption Expenditures (PCE) price index will be released on Friday, June 28th and could show continued easing of inflation. But by how much is the big question?

Recent indicators, including the previous Consumer Price Index (CPI), reflected some cooling of inflation. It's likely that the PCE will follow suit, but it is expected to still be outside of the U.S. Federal Reserve’s target range for starting interest rate cuts. A step in the right direction though, nonetheless!

3.The U.S. Drought Monitor comes out on Thursday, June 27th and will likely show continued expansion of dryness across the Eastern Corn Belt due to heatwaves and below average precipitation. This will likely not be the case in the northwestern Midwest where significant, if not above average, precipitation has been provided for the duration of the heat dome. The heat dome will continue to linger for the foreseeable future, likely into early July.

4.The monthly USDA Cold Storage report will be released on Tuesday, June 25th. Normally, U.S. pork stocks increase month-on-month in the May report but last year, they were sharply lower.

Beef stocks are expected to come in seasonally lower month-on-month, and they should remain lower compared to the last few years (for the same time of year).

5.USDA’s much anticipated June Acreage and Grain Stocks report will be released on Friday, June 28th. We could see a reduction in the U.S. 24/25 corn acreage estimates vs. the March Planting Intentions report, given the delayed start to planting this year. Lower acreage should shrink the corn balance-sheet and support prices depending on the magnitude of the acreage cut.

For daily information and updates on agriculture commodity marketing and price risk management for North American farmers, producers, and agribusiness visit the Risk Management Website to subscribe to the program.

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