Grains are mixed at midday:
Sept Corn -3 3/4 cents/bu (5.46)
Dec Corn -2 3/4 cents/bu (5.44)
Nov Soybeans + 1 3/4 cents/bu (13.59 1/2)
Sept Chi Wheat -1 3/4 cents/bu (6.75 ΒΌ)
Cdn $ -0.00225 (79.47 cents)
WTI Crude Oil -0.46/barrel (71.45)
After shooting higher this morning due to a lower than expected USDA Crop Condition Report released yesterday after the close, grains have settled down to around unchanged.
The infamous USDA Weekly Crop Condition Report yesterday afternoon showed a slight deterioration in crop conditions, versus the trade expectation for unchanged or slightly better ratings.
- Corn good/excellent ratings fell 1% from last week to 64% (5 year average is 68%)
- Soybean good/excellent ratings fell 2% from last week to 58% (5 year average is 65%)
- Hard Red Spring Wheat good/excellent ratings fell 2% from last week to 9% (5 year average is 64%)
No reports are due out this afternoon, so the remaining trading session will be dictated by weather. Temperatures are going reach over 100 degrees Fahrenheit in parts of the western Corn Belt, including Iowa, and that fact will make market bears a little nervous, since 79% of the corn crop is in the pollination phase. No major changes to the overnight weather maps. It will be hot and dry for the next couple days across the bulk of the Midwest. There are scattered chances for rains this weekend, and into the 6 to 10 day forecast, with temperatures moderating to normal. Extended forecasts show mixed chances for rain with temps returning to above normal. The lack of a general rain system in the forecast going into the critical month of August for soybeans has sellers sitting on their hands for the moment.
There were rumors overnight of China being in the market to buy USA grains on this recent break in prices. That remains to be seen, as previous rumors of Chinese buying have not been substantiated in the USDA Export Sales Flash or Weekly Reports. However, the threat of China buying is always good for a market rally!! No flashes were announced this morning, which may have led to the deflation of the prices as we progressed into the day.