|

8-27 Midday: Midday Grain Prices Slide Lower

ByGrain Market Insider

Grain Market Insider Interactive Quote Board

  • Corn is trading lower at midday, pressured by a stronger U.S. dollar and improved rain prospects for the eastern Corn Belt in the second week of the forecast.
  • Dr. Cordonnier forecasts a 15% increase in Argentina’s corn planted acreage this season, while Brazil’s acreage is expected to rise by 1–2%.
  • Ukraine’s farm union has raised its corn production estimate to 29 million tons, up from the previous estimate of 28 million.
  • Ethanol production fell to a 13-week low at 314.6 million gallons, down slightly from 315.2 million the previous week, and in line with year-ago levels. A total of 107 million bushels of corn were used in the production process.

  • Soybeans are trading lower at midday across the entire soy complex, pressured by the extended forecast, which shows continued dryness across the Bean Belt over the next week before precipitation is expected to return.
  • Soybeans pulled back from their highs after the visit with China was characterized as “unofficial,” with no future meetings scheduled with top U.S. trade representatives.
  • Dr. Cordonnier estimates Argentine’s new crop bean planted area to be  down 500,000 ha this coming season while Brazil’s areas are forecast to be up 2%
  • President Trump is following through with pressure on India to stop buying Russian soybean oil and has doubled the tariff on Indian goods to 50%.
  • Wheat prices are mixed at midday with Chicago and HRW edging higher. December Chicago futures are up 4-1/2 to $5.34-1/4 while December HRW is up a penny to $5.21-3/4.
  • Spring wheat ratings declined 1 point from last week to 49% good-to-excellent. This compares to 69% good-to-excellent last year. Spring wheat harvest advanced to 53%, up from 36% last week and up from 48% complete last year.
  • Russia’s IKAR increased the countries wheat production estimate slightly from 85.5 mmt to 86 mmt. The group also raised the country’s export forecast to 43 mmt, up from 42.5 mmt previously estimated.

Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.

Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.