Grain Exchange Update
It’s the first day of August, and the markets certainly aren’t celebrating. Markets continue their downward trend today with what has been reported as favorable pollination conditions encouraging the funds to sell off their long positions. Weather forecasts are showing that dry parts of the Midwest should see some rain late next week. Both the 6-10 and 8-14 day forecasts are showing below normal temperatures and above normal precipitation. While trade seems to think the weather is favorable for higher yields, farmers from across the country aren’t so optimistic.
Soybeans are also softer this morning as well. Open interest in beans was up 4,000 contracts yesterday, however, exports this morning were in line with trade expectations. Basis on river beans remains soft as high waters are impacting the flow of barge traffic in Memphis, Vicksburg and Baton Rouge. Flooding remains to be a problem for grain producers and elevators across the country. Approximately 650,000 bushels of beans started on fire near Rock Port, Missouri after flood waters caused a bean pile to rot and combust.
Local producers are continuing to get wheat off the fields this week. New crop wheat exports this morning were at the lower end of trade expectations. Actual sales came in at 383 thousand tons vs a trade estimate range of 300-600 thousand tons. Corn exports were lower than expected with 143 thousand tons of old crop corn and 129.6 thousand tons of new crop corn. Bean exports were at 143.1 thousand tons of new crop and 305.5 thousand tons of new crop.
Have a wonderful day!