Midwestern weather remains favorable for grains
A lower start is likely in most pits this am, 2-3 wheat and corn, 8-10 beans.
The Weekly Crop Progress report showed corn rated 68% good to excellent, unchanged from last week and beans were 66% good to excellent, also unchanged vs last week. Spring wheat improved to 74% vs 72% previously. Crop development remains way behind normal with corn in the dough stage only 40% vs 64% average while corn in the dent stage was just 9% vs 26% average. Beans setting pods reached just 72% vs 85% average. Winter wheat harvesting is almost done at 94%, but spring wheat harvesting is only 13% complete vs 48% usually by this time.
There were no bean, meal or oil deliveries this am. The outside markets haven't moved far enough to be a factor in the direction of the grains at this time.
Gary Gensler,the head of the Commodity Futures Trading Commission (CFTC) which regulates all futures trading in the US, said he isn't satisfied with the convergence problem in the wheat market. The steps that the CME Group, the owner of the exchange, has taken haven't solved the problem yet, although Gensler didn't say what steps the CFTC would insist on to resolve the issue. Convergence is the coming together of the futures and cash price of a market, such as wheat, when the futures contract expires.
Reports from China indicate the government is considering subsidizing bean crushers (processors) but no announcement has been made yet. This is thought to be a necessary step in order to get the crushers to buy beans from the government auctions, which so far haven't been very successful. The next bean auction is tomorrow when 500,000 tonnes will be offered for sale.
Australia's Weather Bureau says the southern oscillation index fell to -4 from -2 the previous week, a growing indication of an El Niño weather event, which often brings drought to Australian wheat fields and disrupts normal weather in various countries around the world. India's Prime Minister Singh said the country is staring at the prospect of an impending drought due to the poor monsoon so far this season.
Only light rain was seen in a few Midwestern US states yesterday but up to 1.5" is predicted the second half of the week along with cool temps over much of the region as conditions remain very favorable for corn and bean development. ---Vic Lespinasse
The Weekly Crop Progress report showed corn rated 68% good to excellent, unchanged from last week and beans were 66% good to excellent, also unchanged vs last week. Spring wheat improved to 74% vs 72% previously. Crop development remains way behind normal with corn in the dough stage only 40% vs 64% average while corn in the dent stage was just 9% vs 26% average. Beans setting pods reached just 72% vs 85% average. Winter wheat harvesting is almost done at 94%, but spring wheat harvesting is only 13% complete vs 48% usually by this time.
There were no bean, meal or oil deliveries this am. The outside markets haven't moved far enough to be a factor in the direction of the grains at this time.
Gary Gensler,the head of the Commodity Futures Trading Commission (CFTC) which regulates all futures trading in the US, said he isn't satisfied with the convergence problem in the wheat market. The steps that the CME Group, the owner of the exchange, has taken haven't solved the problem yet, although Gensler didn't say what steps the CFTC would insist on to resolve the issue. Convergence is the coming together of the futures and cash price of a market, such as wheat, when the futures contract expires.
Reports from China indicate the government is considering subsidizing bean crushers (processors) but no announcement has been made yet. This is thought to be a necessary step in order to get the crushers to buy beans from the government auctions, which so far haven't been very successful. The next bean auction is tomorrow when 500,000 tonnes will be offered for sale.
Australia's Weather Bureau says the southern oscillation index fell to -4 from -2 the previous week, a growing indication of an El Niño weather event, which often brings drought to Australian wheat fields and disrupts normal weather in various countries around the world. India's Prime Minister Singh said the country is staring at the prospect of an impending drought due to the poor monsoon so far this season.
Only light rain was seen in a few Midwestern US states yesterday but up to 1.5" is predicted the second half of the week along with cool temps over much of the region as conditions remain very favorable for corn and bean development. ---Vic Lespinasse
posted by InsightPublishing at
10:30 AM
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