Market Recap 2 Jul 2019

• USDA’s projected 91.7 million acres planted to corn this year. That was over 4.5 million acres above analysts’ average estimate
• The soybean area came in 4.6 million acres less than expected. If UDSA’s figures are correct, this will be the smallest soybean acreage since 2013.

• NASS will be resurveying farmer’s planting data for corn, cotton, sorghum, and soybeans in July. If the new survey data justifies change, the agency will issue an updated acreage report on Monday, 12 August.
• Weekly NASS crop conditions reported yesterday showed corn and soybeans unchanged at 56% and 54% G/E respectively which falls short of trade expectations of a 1-2% improvement.
• The latest weather forecasts show average or below-average temperatures for most of the Midwest in the next two weeks with average or above-average rain. The outlook isn’t good for fledgling crops, but it’s likely better than hot/dry weather.
• News was released last week that a new tax bill being debated in Paraguay would lower the VAT for exporters of soy crushing derivatives.
• President Trump and Xi had a “good” meeting at the G-20 Summit. The meeting prompted Chinese officials to claim additional purchases of U.S. agricultural products would soon occur, though details were not provided. The market’s expectation is that any such purchases will wait until after a deal is officially inked.
• The Export Inspections report did no favors for the corn market as it showed the continued effects of stiff global competition. The report was bearish corn and soybeans but moderately bullish wheat with YTD exports up 28 percent early in the marketing year.