July 31, 2012
Producer Marketing Manager
Corn: As of 7:30 Up 2
USDA Crop Progress report was released yesterday afternoon, and as expected Corn Good/Excellent ratings dropped 2 percentage points to 24% G/E. There has been many comparisons made of this growing year to what we experienced in other drought years, namely 1988. So for comparison sake, on this date in 1988 Corn rated 19% G/E. With the continued climb in prices and uncertainty of the crop size there has been a push for the EPA to grant a waiver of the Renewable Fuel Standard. Yesterday a coalition of livestock groups formally petitioned the EPA to waive/significantly reduce the RFS for the production of corn ethanol for the remainder of the year and for the portion of 2013 that is one year from the time that the waiver becomes effective. There are also indications that we may have some individual states (AR, SC, TX, and possibly NE) petitioning the EPA as well. The EPA has 90 days to either approve or disapprove the petition. Stay tuned. We pushed to new contract highs again overnight as we touched $8.205 on the December contract.
Soybeans: As of 7:30 Up 10 old, Up 13 new
Crop Progress report also dropped soybeans 2% in the G/E category now rated at 29% nationwide. For a more detailed summary of what the USDA Crop Progress report had to say check it out on our blog page at http://www.wheatgrowers.com/blog. Industry production estimates seem to continue to drop with each passing day of much of the same weather. Technical indicators are bullish as we try and venture back to the old highs of 16.915 on the November contract.
Wheat: As of 7:30 Mpls Up 1, KC steady
The market continues to monitor the Black Sea region to see if there will be an export ban put in place in Russia. Yesterday’s Crop Progress report had Spring Wheat at 28% harvested which is 25 points ahead of the 5 year average. SD is 82% wrapped up and ND is 26% complete. Reporting good yields and decent quality all around.