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USDA Announces Commodity Credit Corporation Lending Rates For June 2016

The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for June 2016. The CCC borrowing rate-based charge for June is 0.625 percent, unchanged from 0.625 percent in May.

The interest rate for crop year commodity loans less than one year disbursed during June is 1.625 percent, unchanged from 1.625 percent in May.

Interest rates for Farm Storage Facility Loans approved for June are as follows, 1.000 percent with three-year loan terms, up from 0.875 percent in May; 1.250 percent with five-year loan terms, unchanged from 1.250 percent in May; 1.625 percent with seven-year loan terms, unchanged from 1.625 percent in May; 1.875 percent with 10-year loan terms, up from 1.750 percent in May and; 1.875 percent with 12-year loan terms, unchanged from 1.875 percent in May. The interest rate for 15-year Sugar Storage Facility Loans for June is 2.000 percent, unchanged from 2.000 percent in May.

Source:usda.gov


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Agricultural and Economic Briefing: USDA Reports, Global Tensions, and Market Reactions

Welcome back to our channel for a detailed update on key developments affecting the agricultural sector and broader economic landscape. Here's what's on the agenda today:

USDA Crop Production and WASDE Reports The USDA is set to release its monthly Crop Production and WASDE reports today at 11:00am CST. These reports will reflect the updated new crop US corn and soybean balance sheets, incorporating data from the June Planted Acreage report which showed a significant increase in corn acreage. While no major adjustments to US corn and soybean yield projections are expected, the focus will be on potential changes to global supply and demand. The reports are anticipated to bear a mostly bearish tone, especially concerning corn prices.

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US Drought Conditions and Agricultural Impact Recent USDA drought monitor data indicates mixed conditions across the US Corn Belt and High Plains, with many areas receiving beneficial rainfall and experiencing cooler-than-average temperatures. However, conditions have worsened in parts of western Illinois and northeast Missouri. These evolving weather patterns are critical for crop development stages and will continue to influence market dynamics.

US Crop Export Sales Corn export sales showed an increase last week, with Colombia being the largest buyer. However, soybean sales were relatively weak, with the Netherlands as the primary buyer. The varied performance in crop export sales reflects shifting global demand and market conditions, which traders closely monitor for strategic insights.

Economic Indicators and Market Reactions In a surprising economic update, consumer prices declined for the first time in four years last month, with the CPI falling 0.1% in June. This decline, coupled with the slowest annual inflation increase since March 2021, has significantly influenced market expectations, with the probability of the Federal Reserve beginning rate cuts in September now standing at 89%.

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