Morning Comments-Wednesday July 27 2016

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Commodity Market                             Tuesday July 26, 2016
Tuesday’s commodity market was higher for soybeans and lower for corn and wheat.  Despite yesterday’s drop in in the soybean market after the forecast for lower temperatures and rain in some of the drier areas of the Corn Belt, today soybeans have slightly rebounded.  The Macro Markets were negative as the DOW was lower; Oil lower and the US Dollar Index were also trading lower.  The Dow closed at 18,429 down 64 points for the day.  Crude Oil closed at $42.74, down $0.39 per barrel.  The West Texas Intermediate Crude (WTI) September 16 to September 17 spread closed tonight at $6.04 carry to September 2017.   September Heating Oil was down $0.0047 per gallon.  The US Dollar Index closed at $97.16, down $0.17. Tuesday’s CBOT closes were 1.75 to 2.25 cents per bushel lower for corn, 7.25 to 9.75 cents higher for soybeans and 11.25 to 14 cents lower for Chicago wheat.
Check out our Daily Grain Bids (updated every 10 minutes during the trading session) by clicking on: www.buchheitagri.com/biehle-grain-bids/  or www.buchheitagri.com/morehouse-grain-bids/  or feel free to call us at 800-622-7937 (ask for Katlyn, Eric or Dave) or call 573-667-9921 or 573-768-0489 and ask for Shon.
USDA Crop Progress reports released Monday afternoon estimated corn Good-Excellent condition at 76% versus 76% LW, 69% LYR and 59.2% for the 5-year average.  The soybean condition ratings were 71% GE, 71% LW and 62% last year with a 5-year average of 58.4%.  Missouri Corn condition was reported as 74% GE, 73% LW, 50% LYR and 48.4% – 5yr. avg.  Missouri Soybeans were 68% GE, 67% LW, 29% LYR and 42.6% – 5-year average.  This report was bearish.  Missouri corn condition is rated 24% better than last year and Missouri soybeans are 39% better than one year ago.  We are still very much in a weather market!  The current weather has been crop friendly and is pressuring prices.
Long Liquidation by the Specs and Commercials pushed the soybean and meal markets lower Monday as Specs bought 0 contracts of corn to finish the day at 47,000 contracts short. They sold 14,000 contracts of soybeans to close at 75,000 contracts long and they bought 4,000 contracts of wheat to close at 111,000 contracts short.  Yesterday’s soybean meal market slightly increased by $2.5 with nearly 15,000 nearby contracts bought.  August and September soybean meal closed at $341 with October at $339.
CIF bids continue to weaken had in the Gulf.  October soybeans were quoted (86 bid-87 ask).  August corn was quoted (73 bid-78 ask), Sep was quoted (76-80) and October corn was bid at 78. August wheat closed at 30 bid and JFM at (40 bid-58 ask).
Barge freight has been trading at remarkably low levels.  Freight firmed 60-70% in the last three weeks with the nearby July quote at 250-265%.  August at 300-375.  Harvest barges traded today at 435-500 for SEP and 490-510 for OCT.
Fescue prices were quite strong during the 2016 Harvest.  We paid prices to range from $0.48 to $0.50 per pound.  A good fescue fertility program involves the addition of 40 lbs. of nitrogen per acre in late August, followed by an application of nitrogen, phosphorus and potassium in the spring.  You can spray 2,4-D and Dicamba for weeds in either the spring or fall.  If you have a very heavy infestation of weeds, you might consider doing both.
Our annual Cattle Call event is soon approaching!  Join us on August 9th to hear from experts how the Veterinary Feed Directive impacts your farm and how the Buchheit team can help you manage this transition.  Great giveaways, expert talks on forage, reproduction, nutrition, animal health and the cattle market.  Drinks and Dinner will be provided. Call the Agri Office at 800- 622-7937 (Ask for Emily or Lydia) or follow this link to RSVP online, http://www.buchheitagri.com/cattle-call-registration/
We are providing a DP program for those producers wanting to wait for a better day in the markets.  We can help develop a marketing plan and a floor price program.  Call Eric or Dave at 800-622-7937, Shon at 573-667-9921 or 768-0489.
We have updated our test plot results on our website.
You can check out our 2015 corn yields and some 2014 soybean and corn yields at:
Be sure to check out our website at: www.buchheitagri.com and see the marketing information available.  If you scroll down on the front page you will find our market info page supported by AgriCharts.  If you examine the left hand side of that page you will discover the options that allow you to create price graphs or charts and also to check on historical spread information.