Market Perspectives June 30, 2016

Chicago Board of Trade Market News

Outlook: USDA’s planted acres and June 1 stocks reports were bearish. Farmers saw the spring run up in prices and planted more corn, 94.148 million acres, about 1.4 percent more than the trade had expected and up 7 percent from last year’s seeded area. There also turned out to be about 4 percent more corn in inventory (4.722 billion bushels/120 MMT) than the trade had expected. Soybeans are bullish and the price ratio with corn is at an historic 3.1/1. This will get baked into the market and remain until and unless weather during the upcoming pollination period takes a turn for the worse.