Good morning. Grains and soybeans are firmer this morning as the latest runs of extended (11 to 15 day) weather models are switching back to a warmer/drier than normal outlook for much of the Midwest. A private survey showing the national corn yield near 163 bu./acre and soybeans near 47.5 bu./acre has also provided some support as did the notion that the recent downturn has been overdone. There was some rain scattered across Illinois yesterday with some locations picking up several inches of rain in a brief period of time but coverage was small and mainly locations got no rain. Better chances for Midwest rainfall come in tomorrow. NASS reported the U.S. June soybean crush at 154 million bu. which was as expected. It also reported 490 million bu. of corn was crushed during June for fuel alcohol and other uses which was 4% less than May’s total. Brazil said that it exported 7 MMT’s of soybeans during July, down from 9.2 MMT’s in June. July corn exports were 2.3 MMT’s vs. 0.6 MMT’s in June. The Dollar is little changed this morning and crude oil is steady. Soybean deliveries were 567 contracts with a date of July 27. Traditional commodity funds are currently estimated to be long 102,000 corn contracts, 45,000 soybean, and 22,000 Chicago wheat contracts. Markets seem due for an up day given this week’s price decline and the latest weather forecasts. Have a good Wednesday.
NOAA 7 Day Precipitation Forecast: