August 4, 2017
Producer Marketing Manager
The August USDA Supply/Demand report is out next Thursday, August 10th…….
CORN: As of 7:45 – Up 3
The corn market shrugged off the weakness in the soybean market and traded both sides of unchanged before closing a couple cents lower. Informa came out with a 165.9 bu/A yield estimate for the August 10 USDA report. This is higher than the FCStone estimate of 162.8 that was issued earlier in the week. ADM is set to shut down a portion of capacity at the corn mill at Peoria, IL…..100 million gallons of the 230 million gallon capacity.
SOYBEANS: As of 7:45 – Up 1
From a technical standpoint, the drop in the soybean market yesterday filled the gap left on June 30th. We are seeing stabilized price action overnight and now begs the question of will we go higher from here or will we be absent of support until the June low of 9.07? The cooler temps and rain events accelerated the selling yesterday and it looks like the funds parted with roughly 9000 contracts of soybeans. Informa’s bean estimate was released at 47.3 bu/A.
WHEAT: As of 7:45 – MPLS Steady, KC Up 4
All classes of wheat futures were lower yesterday as well. Export sales numbers were not very robust and spot floor prices for HRS continue to fall. Harvest should resume across the Dakotas and MT today following the rain event Wed into Thurs. The premium of Sept Mpls over Sept KC is down below $2.50/bu…..it spiked to a $3.27 premium on July 5th.