Higher grains start expected; Outside markets not friendly
A higher start is expected this am, roughly 3-5 wheat, 3-4 corn and 1 beans. Crude oil is lower while the $ is a little higher, not a friendly combination for the grains. There will probably be some evening up today ahead of the USDA wheat production and quarterly stocks reports tomorrow am.
The weekly crop progress report yesterday afternoon showed how far behind crop development remains with just 37% of the corn mature and safe from freezing temps vs 72% normally by this date. Beans are further along but still behind normal with 63% dropping leaves or mature vs 77% average. Harvesting is also well behind normal with only 5% of the beans and just 6% of the corn harvested vs 18% normal for both at this time. Spring wheat harvesting reached 94% vs 98% average while winter wheat planting is 36% complete against 39% average.
Egypt is in the market for optional origin wheat this am with results expected shortly before our 9:30 am central time opening. China's largest feed mill, the New Hope Group, bought 3000 tonnes of corn from Thailand. The president of New Hope Group said they will import more corn if conditions (meaning prices) are right. There has been some speculation recently about the possibility of China importing US corn due to their drought-reduced crop this season and this could still happen although most analysts think it is more likely next year than now. If and when China starts importing large amounts of corn this could have a very bullish impact on world and US corn prices so traders will continue watching the situation.
The delta will be dry for the next few days but more rain is still expected late this week, slowing bean harvesting again. The southwest winter wheat belt might have more showers the second half of the week but dry weather is forecast before and after that, allowing for more planting progress. It was cold this am in the northern Midwest and it will be cold the next few mornings in the north but freeze damage is expected to be light, if any. Rain could delay early corn and bean harvesting with up to 2.5" forecast in parts of the western Midwest the second half of the week while the eastern half of the belt will see up to 1" during this time.
The weekly crop progress report yesterday afternoon showed how far behind crop development remains with just 37% of the corn mature and safe from freezing temps vs 72% normally by this date. Beans are further along but still behind normal with 63% dropping leaves or mature vs 77% average. Harvesting is also well behind normal with only 5% of the beans and just 6% of the corn harvested vs 18% normal for both at this time. Spring wheat harvesting reached 94% vs 98% average while winter wheat planting is 36% complete against 39% average.
Egypt is in the market for optional origin wheat this am with results expected shortly before our 9:30 am central time opening. China's largest feed mill, the New Hope Group, bought 3000 tonnes of corn from Thailand. The president of New Hope Group said they will import more corn if conditions (meaning prices) are right. There has been some speculation recently about the possibility of China importing US corn due to their drought-reduced crop this season and this could still happen although most analysts think it is more likely next year than now. If and when China starts importing large amounts of corn this could have a very bullish impact on world and US corn prices so traders will continue watching the situation.
The delta will be dry for the next few days but more rain is still expected late this week, slowing bean harvesting again. The southwest winter wheat belt might have more showers the second half of the week but dry weather is forecast before and after that, allowing for more planting progress. It was cold this am in the northern Midwest and it will be cold the next few mornings in the north but freeze damage is expected to be light, if any. Rain could delay early corn and bean harvesting with up to 2.5" forecast in parts of the western Midwest the second half of the week while the eastern half of the belt will see up to 1" during this time.
posted by InsightPublishing at
10:30 AM
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