Morning Grain Comments: Wednesday June 27, 2012

CURRENT TREND: Mostly Higher REASON: Weather rally is on until otherwise notified; other news thin until key Friday reports

FRIDAY: QUARTERLY GRAIN STOCKS & JUNE ACREAGE @ 7:30 AM, HOGS & PIGS @ 2 PM, CFTC @ 2:30 PM

MORNING TRIVIA: Of the top eight street names in the U.S., six are numbers (Second Street is #1, Third #2, First #3); name the other two…

MARKET HEADLINES:

• Quick Editorial: the grains continued their surge overnight, particularly
  strong for Dec corn into the morning hours, though soybeans are holding on
  to the largest gains at this point. With key stocks and acreage reports coming
  up Friday, the trade is reminded that beans have the least wiggle room for
  losses in either category, with the new crop situation just as worrisome (if not
  more) than king corn. There’s not much to do over the next 48 hours except
  worry about the heat, and dissect each new batch of weather model runs—the
  trade is anxious to see if the separate models can sort out their vast differences
  before the onset of at least some type of corn belt rains tomorrow night.
• Japan’s Ag Ministry issued an SBS tender today for 120,000 tonnes of feed
  wheat and 200k tonnes of feed barley, for bulk shipment by October 31.
• The CNGOIC reported Chinese DDG imports at 913,000 tonnes over the first
  five months of 2012, including 295k tonnes in May; the cumulative total is
  running 41.5% ahead of last year. Total calendar 2011 DDG imports into China
  were 1.69 MMT, a number that was down 47% from 2010. Chinese palm
  oil imports were also pegged at 5.8 MMT in 2011/12, up 1.5% from last year,
  with shipments totaling 3.99 MMT over the first eight months of the season.
• June 1 Stocks Estimates (bln bu): Avg Est / Est Range / June 1 2011
  Corn: 3.182 / 2.982-3.500 / 3.670 Beans: 0.640 / 0.595-0.662 / 0.619
  Wheat: 0.726 / 0.705-0.748 / 0.862
• June 1 Acreage Estimates (mln ac): Avg Est / Est Range / March USDA
  Corn: 95.96 / 94.30-96.76 / 95.86 Beans: 75.58 / 74.50-76.54 / 73.90
  All Wheat: 56.85 / 55.90-59.34 / 55.91 Spring: 12.66 / 12.00-13.48 / 11.98