COM - CBOT crop futures surge as USDA report shows sizable cuts in U.S. crop quality

2023-06-21 17:55:52 ET

• U.S. futures prices for wheat, corn and soybeans jumped to multi-month highs Wednesday, as traders were surprised by the the latest Crop Progress report from the U.S. Department of Agriculture that showed some of the worst crop conditions in three decades.
• On the Chicago Board of Trade, wheat ( W_1:COM ) for July delivery finished +5.6% to $7.34 1/2 per bushel, corn ( C_1:COM ) for December delivery closed +5.2% to $6.28 3/4 per bushel, and November soybeans ( S_1:COM ) settled +2.6% to $13.77 per bushel.
• ETFs: ( NYSEARCA: WEAT ), ( NYSEARCA: CORN ), ( NYSEARCA: SOYB ), ( DBA ), ( MOO )
• The USDA said 55% of the corn crop is rated in good or excellent condition, compared to 61% last week and 70% at the same time last year, and the lowest for this time of year since 1992 .
• Also, soybean crop rated in good or excellent condition fell 5 points to 54%, and wheat considered good or excellent tumbled 9 points to 51%.
• Corn conditions have been especially poor in Illinois, the second ranked producer among U.S. states, where only 36% of the crop was rated good to excellent for the week ending June 18, down 12 percentage points from a week earlier.
• Concerns also are rising about adverse weather affecting crops elsewhere in the world, including the European Union, where crop monitoring service MARS lowered nearly all average yield forecasts for this year's grain and oilseed crops in the bloc.
• Separately, the U.S. Environmental Protection Agency released its official targets for the blending of renewable fuel through 2025, disappointing ethanol producers and grain handlers .
• The new EPA mandates put ethanol blending at 15.25B gallons for 2023 but slightly lowered 2024 and 2025 totals at 15B gallons.

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