Grain Exchange – 7/9/2020
Grains are trading higher today on the hot and dry extended forecast. Temps are forecasted in the 90’s and most areas will see less than ½ inch of rain during the critical pollination stage. Corn is higher today with December board sitting at $3.60. How high can the weather market push the corn price? Biggest question I hear is will we see $4.00? A weather rally can continue if things stay hot and dry for the next two weeks. Tomorrow is the next USDA S & D report. It will be interesting to see how the June 30th reported decrease in acres planted affect the balance sheet. The average trade guess is carryout is at 2.683 bil bu., down 3.323 Bil bu. from last month.
Soybeans are also seeing an upside today due to weather concerns. Export sales were on the high end as exports were better than expected. The average trade guess for soybean carryout for Friday’s WASDE report is 416 mil bus, up from 395 mil bu last month.
Wheat is rising as large exporters continue to slash production forecasts. Ukraine/Russian crop estimates are getting smaller as well as French wheat. Lower acreage forecasts in Argentina and Britain are also playing into the current rally in wheat. Wheat exports came in midrange of estimates.
Weekly export sales were solid for all crops this week.
The market is giving us an opportunity to step up new crop sales. Call you grain marketing specialist to get some firm offers in.
Keep the faith and stay safe. Have a great day!