Yesterday’s Strong Closes Are Supportive

Good morning. Grains and soybeans are modestly higher this morning, supported by yesterday’s strong closes which left technical indicators pointing higher. Soybeans are also gleaning support from Midwest weather forecasts that show little rainfall  for the first half of September as the crop finishes out. The Dollar is a bit weaker this morning; crude oil is little changed. The USDA will release its monthly Grain Crushings and Fats and Oils reports after the close this afternoon. Traders expect the July soybean crush to be near 153.5 million bu. Informa will release its updated estimates of U.S. corn and soybean production later this morning  – its August yield guesses were 165.9 corn and 47.3 soybeans. A Cargill official yesterday predicted that Brazil will export half of the world’s corn exports from now through January. Deliveries overnight included 832 corn (date of August 30th), 1 soybean, and no Chicago wheat.  Traditional commodity fund short positions are now estimated at 39,000 corn contracts, 23,000 soybeans, and 57,000 Chicago wheat contracts. Yesterday’s strong closes are supportive, but we are heading into a long weekend (markets will reopen Monday night at 7 PM) which will likely limit any big move higher today. Have a great weekend and holiday!

NOAA 7 Day Precipitation Forecast:

8 to 14 Day Outlooks
Valid: September 08 2017 to September 14 2017
Updated: 31 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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