Morning Comments by Shon Stratman
Monday closing saw Dec corn down 7 ½ cents at 3.29, Nov beans down 9 ¾ at 9.45 and Dec wheat down 8 ¾ at 3.96. The Dec US dollar index was down .23 at 95.16, Dow Jones down 150 at 18,111, and Nov crude oil up 1.56 at 46.04.
Dec corn was pressured by this week’s forecast for mostly dry weather across the Corn Belt bringing an improvement to harvest conditions. Monday morning USDA said 52.6 million bushels of corn was inspected for export last week, a bullish amount that has total inspections up 55% from a year ago. The greater concern is that a new supply of nearly 15 billion bushels of new fall supply is more than even the season’s increased export demand can match.
Nov beans were pressured by commercial selling of Dec meal which took it to a new five-month low. As well, prices were pressured by the USDA announcement that last week’s export inspections only totaled 14.1 million bushels. A slight bullish influence came after Dec palm oil traded up 1.5%. Soybeans are struggling to hold sideways with the bearish pressure coming from an anticipation of a record fall harvest.
Wheat traded to below 5.00 with no bullish reasons for buyers to show up to the market. Northern Texas experienced some flooding and India announced a cut in its import tax on wheat but that news was not any match for the record supplies of wheat in the world.
If you have unpriced production visit with Dave, Eric or Shon on our DP program. We always encourage the use of target orders to help price your production. With this up and down market your target could fill while you are busy running the combine.
Visit our website at buchheitagri.com at any time to see our current prices and our DP program.