August 9, 2017
Grain Marketing Specialist
USDA will release their monthly Supply & Demand report tomorrow- Thursday, August 10th. Contact your local Grain Marketing Specialist for more details on pricing opportunities!
CORN: As of 7:45 – Steady
It seems as though the corn market is rather confused going into the WASDE report on Thursday, with a very quiet session yesterday and overnight... which I suspect will follow through today as well. The average trade guess for national corn yield going into the report is 166.2 bushels per acre. This could possibly wishful thinking… some guesses have been as low as 162. Some experts believe that a sustainable rally in the corn market will require a 164 number from the USDA on Thursday. The corn belt continues to see lower than normal temperatures, and along with that, some scattered moisture in the forecast. Crops in Russia are also garnering news lately, where they have a persistent dry forecast during their pollination and ear filling period.
SOYBEANS: As of 7:45 – Old Crop Up 3, New Crop Up 2
Beans are trading to the plus side due to ongoing dry weather in Iowa and southern Illinois- where they are unlikely to see a good rain through the end of the week, at least. As mentioned before, the forecast is mostly for the bulk of the Midwest, and this is supporting the bean market, where we are unsure about the size of the upcoming US crop and the South American crop is still in farmers’ hands. They are currently at 74% sold for 16/17 vs. 84% average by this time of the year, and their 17/18 crop is currently at 8% sold vs. 15% average. Today's trade will most likely be quiet for the same reason as corn- big report day tomorrow.
WHEAT: As of 7:45 – MPLS Up 2, KC Up 2
North Dakota has gotten back into the swing of harvest after drying out from recent rains. Spring wheat made another good move yesterday, still supported by the 40-day moving average and drier weather in the US Upper Plains. Minneapolis wheat is currently at about a $2.70 premium on the board because of a protein need in the large world supply. Unlike the Upper Plains, where moisture has been a problem, the Southern Plains have received very friendly forecasts for some good rains to recharge soil moisture for the next wheat crop they will plant.