Posted on:
August 6, 2024

Markets are trading lower across the board overnight with better than expected bean ratings weighing on that market while the corn/wheat are pulling back after finishing at the top of yesterday’s daily range. Outside markets have equities bouncing after starting the week with large losses, which that weakness spilled into the grain markets early in yesterday’s trade.

Managed funds to start the week were estimated as net buyers of 7k corn to reduce the net short to 288k, net buyers of 8k beans to reduce the net short to 165k, and net buyers of 1k wheat to reduce the net short to 71k.

Crop progress showed corn rated 67% g/e (67 expected), beans rated 68% g/e (66 expected), spring wheat rated 74% g/e (73 expected), spring wheat harvested 6% (8 expected), and winter wheat 88% harvested (89 expected).

China weather is back in the headlines, with extreme heat threatening rice crops now.

The USDA attache in Brazil estimated the 2024/25 Brazil corn crop at 127 mmt, which is the same number that they have used on the WASDE report.

Argus Media reported the French wheat crop would now drop to 25.17mmt, which is the lowest in 41 years. Their harvest is 67% complete, which is behind the average of 84%.

The president of Brazil based Aprosoja Brazil said the acre expansion for the 2024/25 growing season would slow due to low prices. Acres expanded 6% in 2022, 4.5% for 2023, and the expansion may not exceed 1% this year.

The USDA attached estimated 2024/25 EU wheat production at 127.4mmt (USDA 130).

Ukraine reported a drop in grain exports from June to July with shipments still totaling 4.25mmt.

Corn posted an outside up day to start the week, with Dec. rallying until it hit resistance near the 20 DMA. Directional indicators are balances. Support is 3.90 and 3.98 with resistance 4.05 and 4.10.

Beans posted higher highs, higher lows, and a sharply higher close on Monday with the market rallying until it hit resistance at the 20 DMA. Support is 10.00 and resistance 10.30 then 10.46.

Corn is pulling back this morning but had an encouraging start to the week, with the market recovering from large losses earlier in the day to finish higher. A sideways trade is expected ahead of the August crop report on Monday with potential to add more value within the recent range that goes from 3.98 to 4.20-25

Beans are pulling back this morning following better than expected ratings. With that said, we did have a firm start to the week with buyers expected to step in on the early weakness again today.

Corn down 4

Beans down 17-18

Posted on:
August 6, 2024

Markets are trading lower across the board overnight with better than expected bean ratings weighing on that market while the corn/wheat are pulling back after finishing at the top of yesterday’s daily range. Outside markets have equities bouncing after starting the week with large losses, which that weakness spilled into the grain markets early in yesterday’s trade.

Managed funds to start the week were estimated as net buyers of 7k corn to reduce the net short to 288k, net buyers of 8k beans to reduce the net short to 165k, and net buyers of 1k wheat to reduce the net short to 71k.

Crop progress showed corn rated 67% g/e (67 expected), beans rated 68% g/e (66 expected), spring wheat rated 74% g/e (73 expected), spring wheat harvested 6% (8 expected), and winter wheat 88% harvested (89 expected).

China weather is back in the headlines, with extreme heat threatening rice crops now.

The USDA attache in Brazil estimated the 2024/25 Brazil corn crop at 127 mmt, which is the same number that they have used on the WASDE report.

Argus Media reported the French wheat crop would now drop to 25.17mmt, which is the lowest in 41 years. Their harvest is 67% complete, which is behind the average of 84%.

The president of Brazil based Aprosoja Brazil said the acre expansion for the 2024/25 growing season would slow due to low prices. Acres expanded 6% in 2022, 4.5% for 2023, and the expansion may not exceed 1% this year.

The USDA attached estimated 2024/25 EU wheat production at 127.4mmt (USDA 130).

Ukraine reported a drop in grain exports from June to July with shipments still totaling 4.25mmt.

Corn posted an outside up day to start the week, with Dec. rallying until it hit resistance near the 20 DMA. Directional indicators are balances. Support is 3.90 and 3.98 with resistance 4.05 and 4.10.

Beans posted higher highs, higher lows, and a sharply higher close on Monday with the market rallying until it hit resistance at the 20 DMA. Support is 10.00 and resistance 10.30 then 10.46.

Corn is pulling back this morning but had an encouraging start to the week, with the market recovering from large losses earlier in the day to finish higher. A sideways trade is expected ahead of the August crop report on Monday with potential to add more value within the recent range that goes from 3.98 to 4.20-25

Beans are pulling back this morning following better than expected ratings. With that said, we did have a firm start to the week with buyers expected to step in on the early weakness again today.

Corn down 4

Beans down 17-18