Grain Exchange Update
Grain markets are riding a turbulent wave with weather and Trade War with China the main focus. Ag markets are taking a hit after the Trump Administration announced new tariffs on China. China retaliated by asking its state-owned enterprises to suspend importing U.S. agricultural products. Weather is mixed with stress areas at 25% of Midwest and predicting normal to below normal temperatures the next two weeks.
August 12th could prove to be an interesting USDA Crop Production and World Agricultural Supply and Demand Estimates report day. The August report will include resurveying planted acres announced in June using satellite data and for the first time ever, FSA acreage certification information.
Corn is trading slightly lower this morning. Crop ratings declined slightly over the last week and remained the lowest rating for this week since 2012. Corn silking at 78% is 10 days behind the average. Look for choppy trade ahead of the August 12th USDA report.
Soybeans are unchanged. Weather maps are differing on forecasted rain amounts the next 10 days. So far rain has been lighter and more scattered than predicted. IEG released it’s forecast for crop production. They are predicting soybean yield at 48.2 bushels per acre, which is 3.4 bushels below last year. The soybean crop was decreased to 3823 million bushels which would be 721 million below last year’s record.
Wheat is currently down. The U.S. crop was increased to 1934 million bushels which is close to July’s forecast of 1921 million. EU wheat production was lowered again, which could result in higher U.S. exports.
With all the volatility in the markets keep talking to your Grain Marketing Specialist to finalize old crop sales and pricing new crop. Make sure to get offers in ahead of the August 12th report.
Have a Super day!