It’s that time of year where we expect to see weather in the commodity market headlines. Overall the U.S. weather has been conducive to planting, but Russia has reduced their crop expectations due to dryness, says Standard Grain’s Joe Vaclavik.
Vaclavik… “Russia's grain crop will be lighter than expected. The Russian government pegged the total grain crop at 120 million metric tons. They were one 125.3 million metric tons previously. They've had some dryness in southern areas, in particular. Some rain chances do exist in the next couple of weeks, but they shouldn't be enough to offset some of the recent issues. Corn market itself has just consolidated. These July corn futures seem to have found a home around this $3.20 neighborhood/ Range has been tight. Volatility has been low. No major U S weather problem to speak of. I know we've got some issues. You've got your problem in North Dakota that's well advertised. Some of these areas in the corn belt that have seen excessive rains recently. Still there's just not a reason to believe that production is in jeopardy at this point to any significant extent.”
In closing markets:
Chicago July Wheat futures yesterday closed up $0.02 ¼ to $5.16.
July Corn down a penny and a half to $3.17 ½.
Live Cattle futures were up $0.40 on the June board to $98.80. Feeder Cattle for August down $0.12 ½ to $128.87 ½.
Class III milk fell $0.08 yesterday to $17.63.