Morning Highlights


Highlights

  • The August WASDE report is Monday, August 12th at 11:00 AM Central.
  • Extended weather forecasts continue to show below average rainfall in much of the Eastern corn belt, which lends support to the grain markets.
  • As of 7:00 AM Central, gold was $1,502.90 up $5.20, September crude was $53.06 up $0.52, and the dollar index was 97.551 down 0.067.

Corn

  • Corn traded higher overnight in light volume as the market waits for Monday’s report. The December contract traded in a 3-cent range and held above its 100-day moving average of $4.15 ½. Support also comes from a dry extended weather forecast.
  • The French corn crop was rated 60% good to excellent, down from 61% in the week prior according to the French farm office.
  • Spreads: U/Z 7 ½ cent carry; Z/H 10 ¼ cent carry; U/H 17 ¾ cent carry; Z/N 18 cent carry.

 

Outlook:  Higher on dry weather and report positioning.

Oilseeds

  • Soybeans continued yesterday’s rally into the overnight session in light volume. The November contract is currently approaching it’s 20-day moving average of $8.92 ¾.
  • Chinese soybeans were up 9 ¼ cents overnight and settled at 3,465 yuan per ton. Soymeal was up $3.30 per ton and settled at 2,897 yuan per ton and soy oil was up 144 points settling at 6068 yuan per ton.
  • Spreads: U/X 12 ¾ cent carry; X/F 13 ¼ cent carry; X/H 24 ¾ cent carry; X/N 46 ½ cent carry.

 

Outlook: Higher on report positioning and dry weather.

 

Wheat

  • Wheat was mixed overnight in light volume, with Chicago and Minneapolis mostly higher but Kansas City slightly lower to unchanged. December Chicago wheat is currently trading very close to it’s 20-day and 100-day moving averages of $5.02 ¼. If the 20-day crosses downward though the 100-day this is generally a bearish signal.
  • The French wheat harvest is almost complete, with the farm office estimating 98% of the crop is harvested versus 87% a week prior.
  • Spreads: Chicago U/Z 1 ¼ cent carry; Kansas City U/Z 16 ¾ cent carry; Minneapolis U/Z 11 ½ cent carry.

Outlook: Mixed to higher.