Rain Yesterday in WCB Less Than Forecasted

Good morning. Grains and soybeans are posting small gains as we begin the day. Trading volume overnight was lighter than had been seen earlier in the week. Rain amounts yesterday in the western corn belt were generally less than forecasted. This is providing some support this morning as is the perception that this week’s price decline (soybeans are off 50 cents ) has been overdone. SX did close a gap of $9.58 to $9.63 that was established in early July. Outside markets are not providing much support or pressure to grains as the Dollar is steady and crude oil is just slightly weaker. The Dow looks like it will open with small gains. Chinese soybeans were lower today while corn was unchanged. Chinese veg. oil markets were lower . Malaysian palm oil was little changed. Traditional commodity funds are now estimated to be net long 103,000 corn contracts, 39,000 soybeans, and 18,000 Chicago wheat. Bunge says it is rethinking its buying practices from South American producers as farmers are reacting to lower prices by storing more of their soybeans. Maybe Bunge will have to pay more? Exporters are anticipating better basis levels at the Gulf this fall as ownership is nearly non-existent and the Chinese are expected to become aggressive buyers. Something to think about as you consider when to roll short SX forward. Markets are oversold and there remain areas of the Midwest that are too dry but weather forecasts are non-threatening. A modestly higher trade looks likely today. Have a great Friday and weekend!

NOAA 7 Day Precipitation Forecast:

6 to 10 Day Outlooks
Valid: August 09 2017 to August 13 2017
Updated: 03 Aug 2017

Temperature

Precipitation

Hugh Whalen|Commodity Risk Consultant | MID-CO COMMODITIES, INC.| Ph: 309-557-6010 | Fx: 309-828-2822| hwhalen@mid-co.com

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