July 27, 2017
Grain Marketing Specialist
Corn: up 3
Low volume trade across all commodities overnight is making an effort to recover from this week’s losses. New crop December futures are back within the major moving averages. Iowa’s chances for rain quickly dissipated as the system moved east across the state. Today rain is expected across Missouri and Southern Illinois. The extended forecast still looks cool and with less moisture then what we looked at the beginning of the week. Export sales out this morning were very disappointing at 3.6 MBU vs 18.4 MBU last week. The market continues to trade the weather forecast as most of the corn in the corn belt is going through pollination. The weather driven trade window is slowly closing, then we will be back to trading the balance sheet. Through this highly volatile time I would recommend having your targets in place. Below is a look at the drought monitor.
Beans: up 7
Finding support along with corn, again the market was disappointed with the rain event that crossed Iowa. We are coming up on first notice day for the August contract. The new crop soybean contract is holding support at the 200 day moving average. (see the chart below) This has been a strong support level for the beans. Export sales came out this morning bean sales were at 11.1 MBU vs 15.0 last week. USDA just announced a sale of 264,000 bu to an unknown destination.
Wheat: MPLS up 7 KC up 5
Day two of the tour found an the average yield potential to 35.8 bpa. The final tour totals will be out this afternoon after the close. It was a hunt to find spring wheat fields as they estimated 40 to 50% of the spring wheat in western SD and ND have been baled up. Early harvest in SD is finding high test weight and high protein this far. Droughty wheat usually produces high pro. Export sales out today at 18.3 mbu vs 24.6 last week, right in line with expectations.