Grains are higher to close:
Sept Corn +17 (5.68 1/4)
Dec Corn +18 (5.58 3/4)
Nov Soybeans + 31 1/2 cents/bu (13.83 1/4)
Sept Chi Wheat + 8 ¼ cents/bu (6.42)
Cdn $ +0.00050 (79.935 cents)
WTI Crude Oil -2.12/barrel (73.13)
CURRENT WHEAT PROMOTION: To help farmers protect their crop, Wanstead is prepared to take wheat at 17% moisture with no drying charges until further notice, IF the quality is a grade 2. This is regardless of if you will be planting double crop soybeans or not.
Grains moved higher today as weather patterns are showing hotter and drier weather in the western belt again. Coupled with the bullish weather forecast that is putting some premium in the market, the tightness in the oilseeds market is helping to support the rally. Canola is looking extremely worse for wear, and although the USDA has the Canadian canola crop at 20.2 MMT, private estimates are as low as 17.0 MMT. A lack of canola leads to a greater demand of soybean oil and other alternatives.
Another weather story making headlines today is that models are starting to show another La Nina starting in the fall which causes some concern for the central and southern plains winter wheat crop as well as next year’s Brazilian crop.
The EIA report was released this morning and showed that for the week ended July 9th, commercial crude oil stocks decreased 7.9 million barrels to 437.6 million barrels, while ethanol stocks stayed stagnant at 21.1 million barrels. Ethanol production decreased 26 thousand barrels per day to 1,041 thousand barrels per day. Estimated marketing year corn use to date for ethanol totals 4.307 billion bushels, up 150 million or 3.6% from the previous year's pace. The total falls short of the seasonal pace needed to hit USDA's target by 36 million bushels, but the deficit is shrinking.
Traders will get fresh demand data tomorrow in the form of export sales for the week ended July 8 & NOPA crush data for June.
Funds are thought to be all buyers today.