8/25/2017 7:27:05 AM
- Hurricane Harvey looks to terrorize Texas/Louisiana with as much as 30-40” of rain in some areas.
- Energy markets mostly higher. The US$ is weaker and the CD$ and gold are slightly stronger.
- September option expiry today after the close. First Notice Day for September futures is August 31st with all long positions being reported after the close on the 30th.
- Final crop tour results are scheduled for release after today’s close.
- The corn market traded lower on technicals and lack of fresh supportive news. The trading range holds around 2-3 cents, hovering just above contract lows. The corn market has lost about 10-11 cents this week so far.
- The crop tour results seem to reflect lower yields than last year’s phenomenal yields, but in-line with what the USDA projected in their August S&D report.
- Day 4 of the crop tour pegs IA corn yield at 179.79, below the 3-year average of 182.39 and MN corn at 191.54, above its 3-year average of 181.32.
- Spreads: U/Z 14 ½ cents carry......Z/H 12 ¾ cents carry......Z/N 25 ½ cents carry.
Outlook: lower trade on better than expected crop size
- The soybean market traded lower on better than expected results from this week’s corn and soybean crop tour.
- The soybean market has gained 5-7 cents this week so far, on decent demand.
- November palm oil closed 27 lower at 2,759 ringgits or smaller than expected exports.
- Day 4 of the crop tour pegs IA soybean pod counts at 1,092.92 compared to the 3-year average of 1,205.69 and MN pod counts were reported at 1,019.96 compared to 1,086.12 on average.
Outlook: lower trade on ample supplies
- The wheat market traded higher overnight on follow through strength from yesterday.
- Mpls has lost around 13 cents for the week so far, while KC and Chicago have lost 5-7 cents for the week.
- The lowest offer for the Tunisian wheat tender is $190.44 C&F. Other offers were $191.44 to $191.98 C&F.
- Spring wheat harvest expected to be near 75-80% complete by this weekend.
- Spreads: Mpls U/Z 18 ¼ carry, Z/H 4 carry......KC U/Z 27 ¾ carry, Z/H 18 ¼ carry.
Outlook: higher trade on recent demand