Yesterday’s closes in grains were well off of the daily lows, and prices are higher at midday today. This signals support at these lower levels.
The debt ceiling deal was passed in the US House and is now moving onto the Senate, potentially offering some support to commodities.
July corn on Brazil’s Bovespa Exchange was lower again, around the equivalent of $4.45 per bushel. This is likely in anticipation of a record safrinha crop and is close to the lowest level in two years.
Sales of corn by Argentina’s farmers total 12.3 mmt to date, compared with 25.8 mmt at this time last year.
On China’s Dalian Exchange, July soybeans hit a new low – the equivalent of $14.47 per bushel. This takes out the previous close of $14.53 (equivalent).
Soybean meal has been trending lower, but is sharply higher at midday – this is supporting soybean futures.
Crude oil has recently been under pressure and is currently below $70 per barrel. This is likely on concern about global economics, especially with China’s economy said to be slowing. This also has been pressuring soybean oil, but both commodities are higher at midday today.
Chinese crush margins are turning negative, which could lead to a slowdown in future purchases of soybeans.
The western prairies in Canada have recently seen beneficial rains to help their wheat crop, and over the next week or so there will be widespread rain in Saskatchewan and western Alberta.
Spain is experiencing drought, but elsewhere in Europe and the Black Sea, wheat crop conditions are favorable. Some of Russia’s spring wheat areas remain dry, however.
Recent heavy rains in China’s wheat growing regions could reduce quality of that crop. Therefore, they may use more wheat for feed.
This morning, there were flash flood warnings in the Texas panhandle area. The wheat crop in this area was already struggling and this may further complicate the problems there.
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.
