Good morning. Grains and soybeans are slightly higher this morning despite heavy rainfall that fell on dry areas of Nebraska and Iowa overnight. Markets have become oversold and traders may be reluctant to press prices much lower. The Dollar is slightly firmer this morning and crude oil is posting small gains. Extended weather forecast continue to show above normal rainfall for nearly all the Midwest over the next ten days. Analysts expect Argentina to plant 5 to 10% more corn acres for the 2017/18 crop year compared to 16/17 as returns favor corn over soybeans. Argentine corn basis rose sharply yesterday. U.S. corn offers are now about a dime higher than Argentine offers. The weekly ethanol production and inventory numbers will be released later this morning with last week’s production expected to be slightly higher than the previous week’s. Traditional commodity funds are currently estimated to be short 13,000 soybean contracts and 33,000 Chicago wheat and long 47,000 corn contracts. A firmer bias looks likely today.
6 to 10 Day Outlooks
Valid: August 21 2017 to August 25 2017
Updated: 15 Aug 2017