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.
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