Slightly lower start is expected…
A slightly lower start is expected, 2-4 in wheat, corn and beans, similar to overnight losses. There were no corn, bean or meal deliveries again this am. 3900 wheat and 2900 oil were delivered with Aug 31 the date. The weekly crop progress report yesterday afternoon showed beans good to excellent rating unchanged at 69%. Corn fell 1% to 69% but spring wheat improved 3% to 75%. Spring wheat harvesting remains way behind normal, 38% complete vs 79% average. Corn in the dent stage reached only 32% vs 60% average and maturity is only 5% vs 13% average. Beans setting pods are 93% vs 96% average.
China auctioned 1.92 million tonnes of corn today out of a total offering of 2.5 million. They will try to auction 500,000 tonnes of beans tomorrow but probably won’t sell very many, if any, until they start subsidizing crushers or prices rise sharply from here. Oil World, the widely followed analytical firm, estimates Argentina will produce a bean crop of 52 million tonnes in 2010 vs just 32.2 million this year. Oil World predicts Brazil will harvest a 62 million tonne bean crop in 2010 vs only 57.6 million this year. South American beans were hurt by adverse weather this year, especially in Argentina. Crude oil is about unchanged while the $ index is slightly higher, not enough to influence our grain market this am. The USDA reported this am Mexico bought 120,000 tonnes of US corn for the 2009-10 crop year. A Chinese government backed website is reporting bean production in Heilongjiang province, the largest bean growing province in the country, will be cut by 1/3 due to drought.
Better rains recently in China’s main grain growing areas should halt further crop losses from earlier drought conditions. The same is true in India, where monsoon rains have improved lately and more of the same is forecast for the near term. There is a growing need for rain in parts of eastern Australia’s wheat belt and moisture is possible Thur-Fri.
The US midwest will stay generally dry this week with mild temps. Some rain is possible over the weekend.
China auctioned 1.92 million tonnes of corn today out of a total offering of 2.5 million. They will try to auction 500,000 tonnes of beans tomorrow but probably won’t sell very many, if any, until they start subsidizing crushers or prices rise sharply from here. Oil World, the widely followed analytical firm, estimates Argentina will produce a bean crop of 52 million tonnes in 2010 vs just 32.2 million this year. Oil World predicts Brazil will harvest a 62 million tonne bean crop in 2010 vs only 57.6 million this year. South American beans were hurt by adverse weather this year, especially in Argentina. Crude oil is about unchanged while the $ index is slightly higher, not enough to influence our grain market this am. The USDA reported this am Mexico bought 120,000 tonnes of US corn for the 2009-10 crop year. A Chinese government backed website is reporting bean production in Heilongjiang province, the largest bean growing province in the country, will be cut by 1/3 due to drought.
Better rains recently in China’s main grain growing areas should halt further crop losses from earlier drought conditions. The same is true in India, where monsoon rains have improved lately and more of the same is forecast for the near term. There is a growing need for rain in parts of eastern Australia’s wheat belt and moisture is possible Thur-Fri.
The US midwest will stay generally dry this week with mild temps. Some rain is possible over the weekend.
posted by InsightPublishing at
10:30 AM
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