Good morning. Grains and soybeans are a bit lower this morning as weather forecasts still show beneficial rainfall across nearly all of the Midwest over the next ten days. The Dollar is firmer to begin the day while crude oil is posting small losses. Yesterday’s crop conditions report showed a rather surprising improvement in corn rated as good or excellent of 2% (now 62%). This has weighed on corn overnight. Soybeans rated as good/excellent declined one percent to 59%. South American corn and soybean basis levels are improving as lower prices are limiting sales by southern hemisphere producers. U.S. soybeans are now competitive with Brazilian beans. Argentine corn remains the cheapest in world export markets but it has been firming the past week. Chinese crush margins have improved this month. The July NOPA crush report will be released this morning – look for the crush to be in the 142 – 144 million bu. range compared to 138 million bu. in June and 144 million bu. last July. Corn harvest is gradually picking up in the south as 42% of the Texas crop and 38% of the Louisiana crop have been harvested. 8% of the Louisiana soybean crop has been cut. A rebound may be in store later today, particularly for soybeans given the crop condition decline and attractiveness of U.S. soybean offers. Have a good Tuesday!
8 to 14 Day Outlooks
Valid: August 22 2017 to August 28 2017
Updated: 14 Aug 2017