Weekly Crop Ratings a negative surprise
A slightly lower start is expected this am, steady/easier wheat, 1 down corn and 1-3 off in beans. The $ is a little lower this am but so are equities while crude oil is steady so these outside markets will not provide much guidance for the grains unless they move sharply in either direction from here.
The Weekly Crop Ratings yesterday afternoon were a bit of a negative surprise for corn and beans with their good to excellent ratings rising. Corn went from 68% to 70% while beans jumped from 66% to 69%. Traders had expected generally unchanged good to excellent ratings. Spring wheat declined from 74% to 72%. Spring wheat harvesting remains way behind normal, just 22% complete vs 66% average, due to late planting this spring and the cool summer, both of which delayed development of this crop. Corn's development still lags way behind normal with only 18% of the crop in the dent stage vs 43% average while 57% is in the dough stage against 79% average for this time in the season. Beans setting pods are behind also at 85% vs 92%. The problem with the slow pace of development for corn and beans is that it makes them hyper-vulnerable to damage should an early frost hit the Midwest. It has been a very cool summer this year and many traders fear this could result in an early frost so they are wary of shorting the market.
China bought US beans every day last week but no new sales were announced yesterday. This am, however, China is back with the USDA saying China bought 110,000 tonnes of US beans for the 2009-10 crop year, which starts Sep 1.
Some light rain was seen in the western half of the Midwest overnight, up to 3/4". The eastern half of the belt was mostly dry the last 24 hours. Rain will fall in the west today-tomorrow, up to 1.5" with more possible Fri-Sat. The east will see up to 1.5" of rain the second half of the week. Much cooler temps are forecast in the Midwest this weekend, keeping the possibility of an early frost in traders minds, which could limit selling pressure in corn and beans. ---Vic Lespinasse
The Weekly Crop Ratings yesterday afternoon were a bit of a negative surprise for corn and beans with their good to excellent ratings rising. Corn went from 68% to 70% while beans jumped from 66% to 69%. Traders had expected generally unchanged good to excellent ratings. Spring wheat declined from 74% to 72%. Spring wheat harvesting remains way behind normal, just 22% complete vs 66% average, due to late planting this spring and the cool summer, both of which delayed development of this crop. Corn's development still lags way behind normal with only 18% of the crop in the dent stage vs 43% average while 57% is in the dough stage against 79% average for this time in the season. Beans setting pods are behind also at 85% vs 92%. The problem with the slow pace of development for corn and beans is that it makes them hyper-vulnerable to damage should an early frost hit the Midwest. It has been a very cool summer this year and many traders fear this could result in an early frost so they are wary of shorting the market.
China bought US beans every day last week but no new sales were announced yesterday. This am, however, China is back with the USDA saying China bought 110,000 tonnes of US beans for the 2009-10 crop year, which starts Sep 1.
Some light rain was seen in the western half of the Midwest overnight, up to 3/4". The eastern half of the belt was mostly dry the last 24 hours. Rain will fall in the west today-tomorrow, up to 1.5" with more possible Fri-Sat. The east will see up to 1.5" of rain the second half of the week. Much cooler temps are forecast in the Midwest this weekend, keeping the possibility of an early frost in traders minds, which could limit selling pressure in corn and beans. ---Vic Lespinasse
posted by InsightPublishing at
10:30 AM
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