Your Pro Farmer newsletter (July 8, 2023) is now available

The drought footprint has modestly receded as rains have become more frequent across the central U.S., though many locations are still in need of moisture. USDA estimated 67% of U.S. corn areas and 60% of soybeans faced some level of drought and its “poor” to “very poor” ratings for both crops were the third highest ever for the beginning of July behind only 2012 and 1988. While weather will remain the primary focus for traders, USDA’s updated balance sheets in the July 12 Supply & Demand Report will reflect adjustments to old-crop demand forecasts based on June 1 stocks. There will be major changes on the new-crop balance sheets to reflect the surprising planted acreage figures, which will result in a big jump in new-crop ending stocks for corn and a significant decline for soybeans. USDA will also issue its first all-wheat crop estimate, including the initial survey-based forecasts for other spring wheat and durum. We have our updated old- and new-crop balance sheets on News page 4. On the economic front, all signs point to additional Fed interest rate hikes to tame inflation after the pause in June. We cover all of these items and much more in this week’s newsletter, which you can download here.