August 2, 2017
Producer Marketing Manager
CORN: As of 7:45 – Up 4
FCStone released their August production survey results late yesterday afternoon and are guessing the US corn crop at 13.59 billion bushels and are using a 162.8 bu/A factor. This is less than the July USDA number of 170.7 and provided the market with a little fuel to trade higher overnight, but probably a little closer to what the market is actually trading. Looking at other world supplies….Brazil doubled their corn exports in July as showing in the graphic below. How much of their large crop will keep us out of the export game this fall and winter? One to keep an eye on!
SOYBEANS: As of 7:45 – Up 8
Monday’s somewhat suprising improvement in the soybean condition rating had the funds actively selling yesterday and closed at $9.71 ¾ . We are seeing support at the $9.65 area on the Nov contract. We did get a little support in the overnight as the FCStone survey was released late yesterday and is showing a bean crop estimate at 4.235 billion bushels and assuming a 47.7 bu/A yield. The most recent USDA yield number is 48.0.
WHEAT: As of 7:45 – UP 4
A lower day in the wheat markets yesterday as the weakness in Corn/Soybeans pulled on the market. Watching the price competitiveness of European wheat…..the Euro is trading at 2.5 year highs and is putting pressure on the price of wheat there, and subsequently Paris wheat has fallen to an 8 week low to remain relevant to world price. Precip for the next 2 days looks to hit the northern plains and drop needed moisture there and slow the early portions of HRS harvest progress.