August 5, 2015
Grain Marketing Specialist
Weekly ethanol numbers out this AM
CORN- Up 1
Corn closed a couple higher on Tuesday with less precipitation forecasted in the 7 day than originally anticipated. New crop corn harvest has begun in the South and most of the corn is heading to domestic markets. Processor bids continue to firm as corn movement has slowed down since the board crash over the last couple weeks. The average trade guess for what yield will be reported in next week’s USDA report is 165 bpa. European conditions continue to worsen as dryness threatens the corn crop. Nearby support for September corn can be found at $3.52 and at $3.625 on the December contract.
SOYBEANS- Up 11
The forecast models released led to strength in the bean market with drier conditions than expected being forecasted. Interesting note, Celeres predicted Brazil acres to increase 2.3% in 2015-16. The national bean yield is still up for debate as traders await next week’s crop production number. Export bids continue to lag prior years as the Chinese wait to get back into the bean buying business. Nearby support for November futures can be found at $9.31. Below is a look at the precipitation forecast for the next week…
WHEAT- Minneapolis Down 1, Kansas City Down 1
Spring wheat harvest continues to roll on as yields look to be good with proteins ranging all over the board. Most traders are expecting the USDA to increase both domestic and world carryout numbers in next Wednesday’s report. The Minneapolis September and December contracts saw contract lows on Tuesday before bouncing a couple higher later in the session. Currently, Japan and Egypt’s GASC are tendering for wheat.