Grains starting day in the red. Wednesday, June 14, 2023

Corn is currently down 8¢.

Soybeans are down 18¢.

CBOT wheat is down 7¢. KC wheat is down 9¢. Minneapolis wheat is down 3¢.

“Rain fell in Wisconsin, Northern Illinois, and the northern half of Indiana,” says Jeremy McCann, account manager at Farmer’s Keeper. “Precipitation is welcomed anywhere in the corn belt, but these areas were lucky enough to receive it. This certainly played a part in the market trading down overnight.”

McCann says Brazil’s agriculture agency CONAB increased the country’s already record corn crop estimation from 125.5 million metric tons to 125.7 million metric tons. He adds CONAB is also estimating record exports numbers for corn and soybeans, which will worsens demand for U.S. product.

Reuters is reporting Russian President Vladimir Putin is threatening to withdraw from the Black Sea Grain Initiative over ongoing roadblocks for Russian exports.

“To convince Moscow to approve the pact…a three-year accord was struck at the same time under which U.N. officials agreed to help Russia with its own food and fertilizer exports,” Reuters reports. “But Putin said that commitment had not been honored due to the perfidy of the West. In response, Russia has slowed down Black Sea grain shipments.”

The U.S. Federal Reserve is expected to make an announcement today regarding interest rates.

“The “data” would certainly appear to be showing easing inflation that would justify the market’s expectations of a pivot in policy – and certainly a pause,” says Arlan Suderman, chief commodities economist with StoneX. “And that is fully the market’s expectation, with this morning’s Fed fund futures trading 93% odds of no rate hike today, with just one more next month before turning rates lower by the end of the year. But keep in mind that this Fed is paranoid about making the same “mistake” made by its predecessors in 1980 when it pivoted too soon. As such, Fed members have repeatedly stated that they would rather error on the side of too high for too long than to pivot too soon.”

Live cattle are down 75¢ this morning. Lean hogs are up $2.80. Feeder cattle are down 50¢.

Crude oil is up 50¢.

S&P 500 futures are up 10 points. Dow futures are down 99 points.

Milling wheat is down on the European MATIF trade. Corn and soybeans are down on the Chinese Dalian trade.

Tags: soybeans, wheat, futures, live cattle, feeder cattle, lean hogs, corn