Grain News Updates
The week did not start out on a high note for grains, losing most of the gains from last week in one day. Grain started the week with a 3% loss on corn and wheat, and 1.25% loss on soybeans. The reason for the decline is weather related with less extreme heat and more moisture forecasted.
Export inspections for corn were at 26.6 mln bu and above the 22.7 mln bu needed to hit export estimate on old crop corn.
Soybeans were lower yesterday with weather being the driving force. Also, the crush report at 148.8 mln bu was below the 152.2 mln bu estimate. USDA crop progress report was mixed in ratings. The average came in a quarter bu better at 50 bpa. Only 22% of the crop is blooming, compared to 49% average. With less acres and potential for lower yields, soybeans have the potential to keep moving higher.
Demand news was mixed yesterday. Export inspections of 31.4 million bushels were near the level needed every week through August to reach USDA’s forecast for the 2018 marketing year.
• U.S. corn conditions 58% g/e vs 56% expected (54-58% range), 57% last week, 72% last year – 1% improvement vs expected 1% decline, widespread corn belt increases
• U.S. soybean conditions 54% g/e vs 53% expected (51-55% range), 53% last week, 69% last year – 1% improvement vs expected unchanged, solid eastern belt/MO increases
• U.S. spring wheat conditions 76% g/e vs 78% expected (75-79% range), 78% last week, 80% last year – ND down 2%, but overall conditions essentially unchanged as 2% increase in excellent offsets 1% increase in fair and poor
• U.S. winter wheat harvesting 57% complete vs 62% expected (58-72% range), 47% last week, 72% last year, 71% average
U.S. and China officials are expected to talk later this week, with potential for meeting again next week in Beijing.
The market will be volatile with weather concerns and questions on true acres planted. Keep in touch with your grain market specialist to market into any rallies. As combines start to roll in wheat please take the time to be safe.
Have a great day!