In the overnight session, the grains traded higher with corn up 2 3/4 cents, soybeans up 6 cents and wheat up 6 3/4 cents. The U.S. dollar is trading lower by nearly 1/2 a percent and crude oil is down 33 cents. Greece expressed interest toward negotiating the latest Austerity proposal from lenders through the remainder of June which is an improvement from the outright rejection of the proposal which occurred last week. This is a slight improvement in the tone and helped lift the Euro early Monday morning.
Scab has emerged in Kansas, the largest producer of winter wheat in the U.S. after wet weather late in the growing season provided ideal conditions for the fungus to grow. The moist conditions have traders concerned about winter wheat crop quality.
Russia’s Sovecon announced that it has upgraded its Russian grain production forecast to 99 million metric tons from 94 million metric tons in its previous forecast.
Traders will be watching the June WASDE report which is scheduled for release out at 11 AM CST on Wednesday. According to a Reuters poll of Analysts the average guess for old crop corn endings stocks is 1.859 billion bushels up from 1.851 billion bushels last month. Analysts are also expecting wheat ending stocks to rise to 712 million bushels which would be up 3 million bushels from May. Old crop Soybean ending stocks are expected to fall by 11 MBU to 339 million bushels.
For new crop, analysts are expecting both corn and wheat ending stocks to rise while soybean ending stocks decline from the May report. The average guess for new crop corn ending stocks is 1.779 billion bushels up from 1.746 billion bushels in May. Wheat ending stocks are also expected to rise, with expectations of 798 million bushels from 793 last month. Soybean ending stocks are expected to decline this month with the average trade guess looking for 487 million bushel carryout compared to 500 million bushels in May.