Morning comments 07/12/13 8:07:15 AM

Good Morning,

          September corn futures closed 7 cents higher and new corn closed up 5 1/2 cents yesterday following the release of the USDA crop report. USDA put corn production at 13.950 billion bushels using a yield of 156.5 BPA. USDA left the planted acreage unchanged at 97.4 million. Corn carryout for the 2012-13 crop came in at 729 million bushels which was 40 million bushels below the June estimate. The 2013-14 ending stocks came in higher than expected at 1.959 billion bushels. The trade was looking for a number closer to 1.874. China purchased 120,000 MT of new crop corn that gave new crop prices a boost on the start of the day. The initial reaction to the 11Am report was bearish to corn prices but then the trade soon started to buy corn futures on weather concerns. The next couple of weeks of weather will be very important as the majority of the corn crop will start to pollinate. Very little rain is in the forecast over the next 10 days along with gradually rising temperatures. The soybean market closed 7 cents higher on old crop and 6 cents higher on new crop on Thursday. USDA put the 2013 soybean crop at 3.420 billion bushels on a yield of 44.5 BPA. USDA left the acreage unchanged at 77.7 million. They also left the ending stocks for 2012-13 unchanged at 125 million bushels while increasing the 2013-14 carryover by 30 million bushels to 295. USDA put the average new crop producer price estimate at between $9.75 and $11.75. Currently corn is trading 3 cents lower, beans are unchanged and wheat is 3 cents higher.

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