USA Grain Markets will re-open at 9:30 am today following being closed yesterday in observance of the July 4th long weekend:
September Corn (5.92/bu)
Dec Corn (5.79 ¾ /bu)
Nov Soybeans (13.99/bu)
Sept Chi Wheat (6.52 ¾ /bu)
Cdn $ -0.00085(80.925 cents)
WTI Crude Oil +1.29/barrel (76.45)
We expect to see volatile grain markets to start the week, following the 3 day Independence Day long weekend in the USA. With no night trading session last evening, when the market opens at 9:30 am this morning, it will have been a little over 91 hours since CBOT grain futures have traded. That seems like an eternity, and will no doubt increase volatility. Early calls are suggesting a sharply lower start to the day, as USA weather looks favorable for spring crop development/winter wheat harvest. However, regional production issues still remain in play (NW Corn Belt and Northern Plains remain dry overall), and the Brazilian safrinha corn crop is certainly not getting any bigger.
Those dry areas of the northern Plains are forecast to get much needed rains over the next 10 days. Forecasters are suggesting that a weak high pressure ridge over the western part of North America should allow rains to fall in the US Northern Plains, Iowa, and the southern Canadian Prairies this week, with Iowa and southeastern South Dakota expected to be the wettest. Southwest Alberta got some rain over the weekend, with two more waves of precipitation expected for the Canadian spring wheat and canola producing regions over the next week and a half. Long term forecasts continue to show a sizeable high pressure ridge across the western USA, which could bring heat and dryness back to the Midwest in the latter parts of July.
Yesterday, crude oil prices were higher, as OPEC delayed a decision on increasing oil output. No firm date has been established for when talks will resume, as there is disagreement internally in OPEC over how increases in production should be divided amongst members of the cartel.
Later today, the USDA will release it’s Weekly Export Inspection Report (11 am ET) and it’s Weekly Crop Progress Report (4 pm ET).