Coffee Cup Comments (Market Commentary)
07-15-2024
The grains are trading sharply lower this morning after last Friday’s USDA report that could have been considered slightly bullish for corn. Old crop ending stocks were reduced by 145 million bushels by increasing feed demand by 75 million and exports by 70 million. This offset some of the increase in new crop stocks associated with the increase in planted acres this year. Soybean stocks were basically left unchanged and carryout numbers modestly changed with a 5 million reduction in exports. South American production was left basically alone with Brazil unchanged and slight reductions in Argentine corn and soybeans numbers. The trade was looking for larger cuts. One thing to remember is that the USDA is still using trend line yields of 181 bushels in corn and 52 bushels in soybeans. The other market mover the weather remains positive for crop development and yield and is weighing on the market. Traders are hoping that lower prices and a slightly lower U.S. dollar as of recent should encourage more export sales. Lower markets to start off of improved growing conditions in the U.S. and lack of fresh demand. Have a great start to your week!