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Karl Setzer Grain Commentary

Closing Comments; Monday, June 25th, 2018

Markets continued the decline in today’s session. Mostly favorable crop conditions across much of the growing areas along with lingering concerns trade negations with China may not get resolved kept the market under pressure.

Brazilian currency valuations remain a significant factor in today’s trade. The Brazilian Real keeps trading to new lows, and as it does, it moves commodity values higher in the country. As a result, farmers in Brazil can lock in record values on both corn and soybeans. Not only has this increased their old crop sales, but will likely lead to larger new crop production as well.

Export inspections for the week ending June 21st were mid-range of trade expectations for corn, soybeans, and wheat. Corn loadings totaled 59.5 million bushels, down from the 10 week average yet enough to meet the USDA’s forecast. Soybean loadings totaled 18.9 million bushels and wheat shipments totaled 13.0 million bushels, both below the volume needed to reach the USDA’s export estimate.

China’s ethanol production forecast is starting to be questioned. It was previously stated than by the year 2020 all Chinese fuel would be blended with ethanol. This is now being questioned, as China is using its corn faster than initially expected. China has yet to change its tariff stance on U.S. imports, which is also going to affect ethanol production and usage in the country.

July corn futures finished todays session 6 cents lower at $3.50 , July soybeans fell 20 cents closing at $8.74 , and July Chicago wheat dropped 14 cents finishing at $4.76 .

Market Commentary provided by:

Karl Setzer, CTA
Grain Solutions Team Leader
MaxYield Cooperative
West Bend, IA 50597

Phone: 515-887-7211