Rainfall This Week Is Expected to Be Heaviest in the Western Midwest

Good morning. Beneficial weekend rains across the Dakota’s and Nebraska and rains this morning in the northern half of Iowa are weighing on grain and soybean markets as we begin the week. The Dollar is stronger and crude oil is weaker. Chinese corn and soybean markets were lower today while veg oil markets closed higher. Malaysian palm oil was lower. Rainfall this week is expected to be heaviest in the western Midwest where up to 2.75” is forecast. The eastern Midwest is projected to get rains of .25 to 1.5” this week. Above normal rainfall is forecast for nearly all the Midwest next week. Last week’s bearish USDA crop report is continuing to weigh on markets and traders will be closely watching the ProFarmer crop tour results to see if the tour, as many expect, comes up with lower yields than did the government. The tour isn’t until next week, so weather will remain the key factor this week. This afternoon’s crop conditions report is expected to show corn and soybean conditions little changed from a week ago. After the late week selling spree, traditional commodity funds are estimated to be net even soybeans, long 52,000 corn contracts, and short 28,000 Chicago wheat contracts. Today is the last day of trading for August futures. The weekly export inspections report will be out at 10 AM. The rains in the west will likely keep markets under pressure as we move through the day. Have a good Monday!

NOAA 7 Day Precipitation Forecast:

8 to 14 Day Outlooks
Valid: August 21 2017 to August 27 2017
Updated: 13 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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