8/24/2017 7:22:40 AM
- Weekly export sales report out this morning at 730 am CDT.
- September option expiry tomorrow at the close.
- Energy markets are mixed with crude oil slightly lower.
- US$ and CD$ are stronger, gold is weaker.
- The corn market traded slightly higher in a very narrow trading range. While the corn market has lost some ground this week there is the potential for more losses with the 2017-18 carryout forecast at 2.3 billion bushels.
- Last year Sep corn went to $3.01 and Dec corn dipped down to $3.15, with a 2.4 billion bushel carryout.
- South Korea bought 60,000 tonnes of corn.
- Average trade estimate for weekly export sales; 450 tmt-950 tmt.
- Crop tour day 3; Illinois corn yield pegged at 180.72 compared to 193.50 last year and the average for Iowa is around 188.23 compared to 187.11 last year.
- Spreads; U/Z 13 ¾-14 cents carry, Z/H 12 ¼-12 ¾ cents carry, Z/N 24 ¾-25 cents carryout.
Outlook: Choppy trade with more downside possible
- The soybean market traded higher on strength in soyoil, palm oil and expectations for another solid week of export sales.
- November palm oil closed 39 higher at 2,777 ringgits with resistance near 2,800 ringgits. The strength comes from slower production than expected, technical buying and a bit of short covering.
- Iran looks to purchase 200,000 tonnes of soymeal.
- China soybeans were down 7 cents overnight.
- Average trade estimate for weekly export sales; 650 tmt -1.5 mmt for beans, 75 tmt-250 tmt for meal and 8 tmt-40 tmt for soyoil.
- Day 3 crop tour finds 1,230.77 pod counts for Illinois, compared to the three year average of 1,269.24.
Outlook: Sideways trade, decent demand and plentiful supplies
- The wheat market bounced higher overnight on oversold ideas and lack of country movement.
- Weekly export sales estimate; 300 tmt-600 tmt.
- SovEcon pegs the Russian wheat crop at 78.9 mmt. Does not seem like there is a top on this crop.
- Japan bought 98.574 mmt of US wheat ant 35.217 mmt of Canadian wheat. No Australian wheat was noted in this round.
- Tunisia looks to purchase 167,000 tonnes of milling wheat.
- Jordan bought 50,000 tonnes of optional origin wheat.
- Iraq buys US and Australian wheat (50,000 tonnes from each).
Outlook: higher on oversold ideas, lack of selling and emerging demand