Coffee Cup Comments
The market is down across the board this morning leading into the report at 11 am. This report will tell us planted acres and quarterly usage. On acres, we are expecting an increase in corn and a decrease in beans. Corn sense the March intended acres report did a good job buying acres, while some bean acres went to prevent plant. 3rd quarter usage is expected to be strong on both corn and beans. Beans are expected to have strong export numbers if the USDA uses numbers previously printed. Corn is expected to have good ethanol and feed use numbers. Traders are nervous about this report since the increased volatility in the market. Ethanol production for the week decreased 4K to 1,051,000 bpd. Stocks decreased 700k to 22.75. This leads one to believe ethanol demand is still strong. Russia raised its wheat export numbers to go along with an expected record crop. Reuters put out a poll that is expecting 22/23 Brazilian bean crop to be 147.9 mmt, which is roughly 20 mmt higher than last year. Increased acreage gets the credit for this. The report will be the dictating factor on the market today. Have a great day!