August 1, 2012
Producer Marketing Manager
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Corn: As of 7:30 – Down 9
After trading higher last night, overnight futures markets turned lower as we roll into a new month. The RFS seems to be getting more and more press about petitioning the EPA for a waiver. The one local news channel I watched last night carried it as their lead story. We are hearing reports of early harvest activity south of Springfield, IL with yield indications ranging from 43-130 bu/A. European weather models are showing a cooler and wetter 6-10 day forecast. Technically momentum is starting to slow a little and we didn’t hold the $8.00 level overnight so look for support in that $7.72 area if we continue to slide.
Soybeans: As of 7:30 – Down 14
Soybeans closed lower yesterday on possible changes in the general weather pattern as more moderate temps are seen in the extended forecasts as well as greater chances for precip. End user basis bids all rolled to the November contract yesterday. There was a little talk about some new crop harvest starting down in the Delta.
Wheat: As of 7:30 – Mpls Down 14, KC Down 17
Wheat led the charge down yesterday with the nearby KC contract dropping 24 cents. Much of this was driven off of world wheat tenders that were traded nearly $1/bu below the US offers. We’ll get another look at our competitiveness as Saudi Arabia is tendering for 275k tones of Hard Wheat for Oct-Nov. Continue to keep an eye on Russia if they place restrictions on exports. Today marks the first day Canadian wheat producers have the ability to make sales and deliver wheat outside the control of the Canadian Wheat Board. It will be interesting to see how this changes the dynamics of the western wheat market both there and in the US.