8/22/2013 7:24:20 AM
- Rains have the grain and the soybean markets on the defensive this morning as traders monitor weather patterns and forecasts.
- The U.S. dollar is trading higher +.438 at 81.650. Gold -1.50 at 1368.60 per ounce, Silver +0.102 at 23.065 per ounce. Oil +.56 at 104.41 per barrel, Brent +.013 at 109.94 and Nat Gas +0.028 at 3.488.
- Dow futures are +43.00 at 14,890.00, S&P futures +6.75 at 1,643.25 and NAS futures +18.50 at 3,081.00.
- Showers are being seen in southern MN across IA, IL and IN. The region is seeing cooler temperatures than were previously forecast.
- The September contracts for corn, wheat and oilseeds will expire September 13th.
- Day 3 of the Pro Farmer tour estimate corn yield in Illinois at 170.48 b/a. Above the 3-year average of 148.04 b/a. Some areas in western Iowa were surveyed and the eastern areas will be surveyed today. Results for the entire state will be released tonight.
- Export sales estimates for corn are coming in at 550,000-950,000 MT.
- Open interest in the September contract totals 160,000 contracts.
- The Sept/Dec corn spread is trading at a 17 ¼ cent inverse up 2 ½ cents from yesterday’s close.
Outlook: Look for 4-6 cents lower.
- The Pro Farmer tour has pod counts in Illinois at 1,115.97 pods versus 944.05 last year. The 3 year average is 1,149.47 pods in a 3’ by 3’ square. “Weather in the next couple of weeks will be critical for our final yields. This is especially true of soybeans that have many pods waiting for a shot of rain to see if they will be realized.”-Joe Hofmeyer CHS Hedging.
- Export sales estimates for soybeans are 1,350,000-2,000,000 MT, soymeal 150,000-400,000 MT. and soyoil 0-20,000 MT.
- Malaysian palm oil is up 21 ringgits at 2,356 basis November. For the week futures are up 41 ringgits.
- Sept open interest for soybeans 25,100, soymeal 31,500 and soyoil 30,800 contracts.
Outlook: Soybeans are 5-10 cents lower.
- Scattered showers with highs temperatures from 82-92F are seen in the Midwest over the weekend. More rains and higher temperatures are seen next week. Harvest progress is continuing but remains behind average for this time of year.
- Japan bought 153,090 MT of milling wheat and 129,055 MT of U.S. wheat.
- Wheat estimates for weekly export sales range between 400,000-650,000 MT.
Outlook: Wheat markets are 1-3 cents lower.