Grains are lower in overnight trading:
Sept Corn – 3 ½ cents/bu (5.39 ¼ )
Dec Corn – 3 ¼ cents/bu (5.27 ¾ )
Nov Soybeans – 8 ¼ cents/bu (13.19)
Sept Chi Wheat – 1 ¼ cents/bu (6.21 )
Cdn $ -0.00520 (79.63 cents)
WTI Crude Oil -0.42/barrel (71.78)
Grains have traded both sides of unchanged again overnight, but currently corn, beans, and wheat are all close to their lows for the session. US Midwest weather continues to be the focus from traders, with forecasts containing precipitation and cooler temperatures, that is being viewed as favorable for upcoming corn pollination. Yesterday, rains were light and scattered, primarily focused in the central Midwest, with similar conditions expected through Sunday, except for a narrow band Friday/Saturday stretching up into the Dakotas. Precipitation is mostly limited to the eastern Corn Belt in the 6 to 10 day forecasts, with drier conditions throughout for the 11 to 15 day window.
Yesterday, we saw corn values continue to drop from Monday’s limit down close, based on the moisture forecasts listed above. Soybeans managed to rally yesterday following Monday’s steep losses, as rumors of Chinese interest in US soybeans fuelled a bit of a rally.
Next Monday, July 12th, the USDA will release it’s July Supply and Demand/Crop Report. The consensus of the trade is that the government is unlikely to make any major changes to 2021 production levels or to ending stock projections (both old crop or new crop). Most analysts believe that the USDA will wait for the August Crop Report to “tweak” yield projections, particularly in light of recent rains in the dry areas of the NW Corn Belt, and the fact that it is difficult to assess the overall benefits of those rains so soon after they have fallen. Below is a listing of the average trade guesses for Monday’s Report:
Yesterday, Brazil’s Ag Ministry projected a 27% rise in domestic grain production over the next 10 years. They project that acreage will increase from 68.7 million hectares to a whopping 81.0 million hectares in 2030/31 (170 million acres currently increasing to 200 million acres in 2030)