July 26, 2016
Grain Marketing Specialist
Grain markets are steady as debate over the 2016 crop production gets heated. Financial markets try to gain. The dollar, gold and crude are down.
Corn: 2 lower
Corn moving slightly lower this morning. Export inspections, yesterday, were at 51.4 million bushels. This was in line with trade projections. Crop conditions, reported yesterday, were steady at 76% Good to Excellent. Silking was at 79% vs the 5-year average of 70% and corn dough was at 13% which was in line with the 5-year average. Weather forecasts continue to show precipitation chances. Bearish news all around. Sep and Dec futures are holding above new established lows of $3.26 and $3.33 respectfully.
Soybeans had another double digit loss yesterday as funds continues to liquidate their long bullish position. Weather forecasts, and adequate moisture continue to pressure the soy complex. Export inspections came in at 25.7 million bushels. This was well ahead of trade projections. Crop conditions were steady at 70% Good to Excellent. 76% of the crop is in bloom and 35% of the plants are setting pods, according to the USDA. Both are above the 5-year average. Technically speaking we are about 10 cents away from the 200 day moving average, and the ratio between new crop corn and new crop soybeans is at 2.85 vs the normal 2.5-2.6. Soybeans will continue to see pressure.
Wheat: 5 lower
Wheat was leading the markets yesterday, despite losses in soybeans. Export inspections were at 20.2 million bushels, which was on the upper end of the trade guess and lent support to the day’s trade. Row crops will keep the wheat markets from inching higher. French wheat having quality issues, because of excess rain, which could possibly reach into Germany, may cause some market move. Time will tell. Winter wheat harvest is 85% complete.