Grain News: July 11, 2019 – WASDE Report out at 11:00AM
Today at 11:00AM the World Agricultural Supply and Demand Estimates (WASDE) report will be released. Traders have been positioning themselves for the last few days ahead of the report. Yesterday the results sparked some technical buying for corn, soybeans and wheat, with a move higher. Uncertainty over USDA’s estimates for today’s report include not only production, which will be based off the agency’s surprisingly low forecast from the June 28 report. Demand is also in question for both old and new crop. China still has a huge book of outstanding sales on the books while new crop interest may be muted by African Swine Fever.
USDA is extending the deadline to report crops planted from July 15 to anew date of July 22, 2019 for a dozen different states due to wet planting conditions: Arkansas, Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri, Minnesota, North Dakota, Ohio, Tennessee and Wisconsin.
All eyes are on the forecasts over the next week is development of an unusual system than originated over the Southeast and moved into the Gulf where it may become a tropical depression, bringing heavy rain to the Gulf Coast as it moves west. The system has potential to pull moisture up into the Delta, and perhaps even the Midwest.
Reuters, a law firm representing small U.S. refineries has urged the Environmental Protection Agency to keep refiners’ applications for waivers from the nation’s biofuel policy secret from the Department of Agriculture, arguing that the petitions include confidential business information. The request, made by Perkins Coie in a letter to the EPA dated July 5, adds to mounting pressure from representatives of the refining industry for the Trump administration to box the USDA out of the controversial waiver program.
Basis in the area continue to get narrower and narrower with end users trying to secure your corn. Have faith in your marketing plan at these profitable levels and don’t be trying to hit the home run. Remember that all it takes is a tweet or USDA report to turns things around in a heartbeat!
Have a great day,