Higher Grains Start Expected
A higher start is expected this am, roughly 2-3 wheat, 1-2 corn and 10-12 beans. The outside markets are slightly supportive for the grains this am with crude oil and equities a little higher while the $ is a little lower. The market added a cold weather premium last week to prices, especially beans, but took this premium out so far this week due to the lack of any cold weather threat. Now, we might be in a state of equlibrium for a short period as the market watches the developing weather. Prices could swing back and forth on either side of unchanged as a result.
Weekly export sales were in line for wheat at 406,000 tonnes, meal at 19,000 tonnes old crop and 113,000 tonnes new crop, and oil at 24,000 tonnes. Corn sales were at the high end of trade ideas with 345,000 tonnes of old crop sales and 594,000 tonnes of new crop sales. Bean sales were very good, minus 59,000 tonnes old crop due to cancellations but 1.108 million tonnes of new crop sales.
The USDA this am announced the sale of 110,000 tonnes of US beans to China and the sale of 174,000 tonnes of US corn to an unknown destination. Deliveries this am totaled 3800 wheat, 2500 oil and 166 corn.
The four main Argentine farmers unions said today they would not extend the strike against the government past tomorrow but they didn't rule out future protests.
Informa comes out this am at 10:30 US Central time with their Sep crop guesses. The CFTC will start putting out its expanded Commitment of Traders reports tomorrow afternoon, which will contain a lot more information than the old version.
The monsoon rains in India have improved with rainfall for the week ended Sep 2 close to normal while rain in the week ended Aug 25 was only 5% below normal. Improved rain is also forecast to continue in China's main grain growing areas. Light rain is forecast in the dry parts of Australia's wheat belt the next two days but more will be needed there again soon. There is a chance of a freeze in the northern Canadian Praries early next week which will also be closely watched.
The US Midwest will see a few light, scattered showers over the next 5 days or so with mild temps. The 6-10 day outlook has a turn to cooler temps late in the period which the market will watch closely to see if this develops into a threat as corn and beans will still be vulnerable at that time. ---Vic Lespinasse
Weekly export sales were in line for wheat at 406,000 tonnes, meal at 19,000 tonnes old crop and 113,000 tonnes new crop, and oil at 24,000 tonnes. Corn sales were at the high end of trade ideas with 345,000 tonnes of old crop sales and 594,000 tonnes of new crop sales. Bean sales were very good, minus 59,000 tonnes old crop due to cancellations but 1.108 million tonnes of new crop sales.
The USDA this am announced the sale of 110,000 tonnes of US beans to China and the sale of 174,000 tonnes of US corn to an unknown destination. Deliveries this am totaled 3800 wheat, 2500 oil and 166 corn.
The four main Argentine farmers unions said today they would not extend the strike against the government past tomorrow but they didn't rule out future protests.
Informa comes out this am at 10:30 US Central time with their Sep crop guesses. The CFTC will start putting out its expanded Commitment of Traders reports tomorrow afternoon, which will contain a lot more information than the old version.
The monsoon rains in India have improved with rainfall for the week ended Sep 2 close to normal while rain in the week ended Aug 25 was only 5% below normal. Improved rain is also forecast to continue in China's main grain growing areas. Light rain is forecast in the dry parts of Australia's wheat belt the next two days but more will be needed there again soon. There is a chance of a freeze in the northern Canadian Praries early next week which will also be closely watched.
The US Midwest will see a few light, scattered showers over the next 5 days or so with mild temps. The 6-10 day outlook has a turn to cooler temps late in the period which the market will watch closely to see if this develops into a threat as corn and beans will still be vulnerable at that time. ---Vic Lespinasse
posted by InsightPublishing at
10:30 AM
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