Grain Exchange Update
Positive day for the grain markets today as beans rally following on the coattails of bean oil. Export sales in bean oil were bigger than expected, which has the funds doing some short covering causing the markets to jump. The USDA announced exports of 135,000 tons of new crop soymeal to the Philippines. South Korea bought 23,000 tons of soyoil.
Weather forecast is showing limited rains over parts of the Eastern Corn Belt. This will cause stress to the plant over moisture in up to 1/3 of the Midwest. However, the southeast cotton/soy acres are seeing limited stress as the delta rains are providing enough moisture. While the U.S. is relatively dry, China is seeing flooding following Typhoon Lekima that is threatening their corn and soybean production.
U.S. farmers have been holding off on making sales until the WASDE report is released on Monday. This will give supply and demand, as well as re-surveyed acreage numbers from the June report. Ranges of harvested acres from trade and Informa have big ranges ahead of the report. Corn harvested acres estimated range anywhere from 76.1 – 81.9 million acres. The soybean range is also big with estimates coming in between 77.3 and 82.8 million acres.
If you have any questions ahead of the report, give us a call! Now is a good time to get your open offers updated ahead of harvest.
Have a great day!