Grains closed lower on Friday:

Dec Corn – 2 ¼ cents/bu (5.27 ¼ )

Nov Soybeans – 12 cents/bu (12.84)

Dec Chi Wheat – 4 ¼ cents/bu (7.08 ¾ )

Cdn $ -0.00415 (78.45 cents)

WTI Crude Oil -0.64/barrel (71.97)

Grain futures came under pressure all day yesterday, as the expectation of new crop harvest pressure weighed on markets.  That anticipated harvest pressure, and ongoing concerns over the time it is taking to bring more USA Gulf terminal capacity back online dominated trade talk, despite the fact that the market continues to expect to see good export demand going forward.  To that end, the USDA confirmed another Flash Sale for 132,000 tonnes of US soybeans to China on Friday.

In the central Midwest, corn basis bids from processors collapsed this past week, as new crop becomes widely available.  Early harvest yield reports are variable, with the consensus that Iowa corn yields are initially coming off better than expected, while Illinois corn yields are as expected to possibly a little lower than hoped for.  With yields seemingly a non-factor this week, some debate has returned to whether or not the USDA will bump up corn acreage in it’s October Crop Report.  One would have to think that since the government already adjusted acres in the September report, any October changes will be minor, but market bears on Friday were beating the acreage drum nonetheless.

The bean complex was the weakest of the grains on Friday, as more cynicism builds over the Biden administration and the potential for the Environmental Protection Agency to lower biofuel mandated inclusions in gasoline and diesel.  The value of biodiesel processing credits continues to slide, and that weighed on soyoil initially, which spread to beans and to meal values.

Wheat was lower in sympathy with the rest of the grain complex, despite the fact that international wheat values showed some strength on Friday.  Good moisture is forecast in extended weather models for the Southern Plains and the Pacific Northwest.  That moisture is viewed as positive for wheat planting and early crop development.  In addition, the fact that USA wheat insured prices for growers are fixed at levels that are the highest in 8 years has many pundits predicting increases in USA winter wheat plantings of up to a million acres.

After the close of trading yesterday, the CFTC released their weekly report on fund positions in commodities.  As of last Tuesday (Sept 14) funds were less long corn than expected by 9,000 contracts, funds were less long soybeans than expected by 8,000 contracts, and funds were less short wheat than expected by 1,000 contracts.  On the day Friday, funds were believed to have been sellers across the board, liqudating an estimated 3,000 corn contracts (long 199,000), 7,000 soybean contracts (long 53,000), and 3,000 Chicago wheat contracts (short 6,000).

Wanstead Farmers Co-op is open to receive soybeans all weekend, despite the fact that the Sarnia terminal has decided to remain closed on this first harvest weekend.  If you need trucks or want to schedule a delivery, please do not hesitate to call us.  Alvinston, Inwood, and Wanstead are open for business!!