Review of Agriculture Commodity Prices - June 2023

Review of Agriculture Commodity Prices – June 30, 2023
 

Corn

The cash price of corn as measured by the National Cash Corn index was down 15.43% in June and is down 26% since June 30, 2022.

Highlights of news in the corn market in June;

• The European Union's crop monitoring service on June 19^th reduced nearly all its average yield forecasts for this year's grain and oilseed crops in the bloc, citing adverse weather conditions.[1]
• The Mexican government has decided to implement a 50% tariff on white corn imports, pursuing more protectionist measures and trying to keep genetically modified grain out of the country's tortillas after a six-month waiver on duties.[2]
• Corn condition rated good to excellent fell 5% to 50% on June 26^th.  [3]

 

Soybeans

The cash price of soybeans as measured by the National Cash Soybean index was up 13.21% in June and is down 9% since June 30, 2022.

Highlights of news in the soybean market in June;

• Argentina's current soybean harvest is nearing completion with total production expected to reach just 21 million metric tons, a major grains exchange said on June 8th, far below yields from previous years for the country's main cash crop.[4]
• U.S. grains merchant Bunge and Glencore-backed Viterra are merging to create an agricultural trading giant worth about $34 billion including debt, the companies said on June 13th, in a deal that will likely draw close regulatory scrutiny.[5]
• The Biden administration on June 21^st increased the amount of biofuels that oil refiners must blend into the nation's fuel mix over the next three years[6]
• The most intense drought to hit the U.S. Midwest farm belt since 2012 deepened,sapping soil moisture and threatening crop yield potential in the heaviest corn and soybean production areas of the United States.[7]
• Soybean conditions rated good toe excellent fell to 3% to 51% on June 26^th.[8]

 

Wheat

The cash price of wheat as measured by the Cash Wheat index was up 7.13% in June and is down 26% since June 30, 2022.

Highlights of news in the soybean market in June;

• Ukraine's combined grain and oilseed crop harvest is set to fall to 68 million tonnes in 2023, from 73.8 million tonnes in 2022, Ukrainian grain traders union UGA said on June 1st.[9]
• Australia's production of winter crops is set to fall from record highs, with wheat output seen declining more than 30%, the country's agricultural department said, as forecasters predict dryness due to the El Nino weather pattern.[10]
• India's wheat harvest in 2023 is at least 10% lower than the government's estimate,[11]
• An end to the Black Sea grains deal would hit the Horn of Africa hard, aid officials said on June 26^th  warning that another hike in food prices would add to the tens of millions of people facing hunger.[12]
• Canadian farmers seeded the most wheat in 22 years, slightly more than expected, and also planted more canola than the industry was forecasting, a government report showed on June 28th.[13]
• Argentina's wheat harvest for the 2023/2024 season is estimated at 18 million19 million metric tons, according to a government forecast issued on June 29th, up by about half compared to the previous drought-stricken harvest.[14]