Aug 31, 2016
Grain Marketing Specialist
Corn had a quiet trading session in the overnight, with only trading in a 2 cent window. Yesterday we saw corn down again in sympathy to the bean complex. The corn market is technically oversold, but without any bullish news corn will have a hard time gaining any upward traction. The 6-10-day forecast shows a good chance for above average temperatures across most of the eastern US. The highest likelihood of precipitation is centered in Minnesota and surrounding states, encompassing most of the Upper Midwest.
Soybeans: Down 3-8
The bean complex continued its downward spiral as we saw Nov beans fall 13 ½ yesterday and the selloff continued into the overnight session with them down 6 3/4. Majority of the pressure is coming from a large projected crop along with a stronger US dollar. We did see China step up and signed agreements to buy 146 MB yesterday but it didn’t add any support to the market. The positive outlook that brings is demand for US beans as we move into harvest.
Wheat: Higher 2-5
Wheat was hit hard again yesterday with the pressure on the row crops. Minn being the only commodity to end up positive at 1 ½ cents. We did see some reprieve on the overnight session as KC held its head above water and MWZ was up 1 1/4. We could see wheat start to halt its slide as the market is seen as largely oversold. Egypt’s latest tender to buy wheat produced one offer out of Ukraine. Many sellers are reluctant to put forth offers after Egypt re-installed its zero ergot policy.