The most active corn contract for September delivery fell 5.75 cents, or 0.86 percent, to settle at 6.64 U.S. dollars per bushel. September wheat lost 6 cents, or 0.64 percent, to settle at 9.3 dollars per bushel. November soybean rose 15.75 cents, or 1.08 percent, to settle at 14.7825 dollars per bushel.
The July/December corn spread has pushed out to a 1.15-dollar premium as cash corn holds stout above 8.00 dollars, while cash soybeans hold near 17.00 dollars with the July/November spread pushing out to 2.05 dollars in premium. This shows how tight old crop stocks really are and suggests that the minimum supplies of U.S. corn/soybean that are needed are larger.
The U.S. Department of Agriculture Stocks/Seeding Report is due Thursday. Chicago-based research company AgResource looks for combined U.S. corn/soybean acres to fall at least 2 million acres. Wheat is forming a seasonal low while July weather in the Midwest looks to be threatening. AgResource doubts that December corn can sustain much a decline below 6.00 dollars at harvest.
U.S. wheat was not offered to GASC as a result of difficulty in meeting a protein specification at 11 percent for soft red winter wheat or a desire of U.S. wheat exporters to hold their stores and hedge them in forward futures. The trade awaits the decision of GASC and tonnages that they will commit to. A large purchase remains possible.
The Energy Information Administration reported Wednesday that for the week ending June 24, the United States produced 309 million gallons of ethanol, down 1 million gallons from the week prior. U.S. ethanol stocks fell to their lowest level of 2022.
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