Morning Highlights


Highlights

  • Markets prepare for a new month, new marketing year and the extended Labor Day Weekend holiday.

  • Energy markets are weaker with Nymex crude oil down 40 cents, RBOB down nearly 1 ½ cents and heating oil down about a penny. The US$ and DOW futures are higher.

Corn

  • The corn market trades slightly higher on follow through buying after yesterday’s strong technical performance. CZ currently trades 14 ½ cents off yesterdays’ new contract low and the overnight high is, so far, the weekly high at $3.59 ¼.

  • The next USDA crop production report is scheduled September 12. Private estimates begin to be released. One private now pegs the US yield at 166.9bpa, up from their previous estimate of 162.8bpa as they play catchup to the USDA.

  • Large spec funds are now estimated net short 103,800 after yesterday’s bout of profit taking.

  • Temperatures are expected to turn cooler in the upcoming week, bringing low enough overnight lows to possibly be a concern in northern growing areas. Overall crop development remains behind last year.

  • Deliveries of 832 contracts with a trade date of Aug 30.

Outlook: Trading a penny better in muted trading and a new marketing year

Soybeans

  • Soybeans also trade higher to continue the short covering overnight.

  • Technically SX ran into resistance at $9.50 overnight, but stays within the past three week’s trading range.

  • Weather is mainly non-threatening though forecasted cooler temps will slow development. Frost threats remain limited.

  • Deliveries of 1 soybean contract, 200 soymeal and 461 soyoil.

  • In spread trade, the SX/SF trades a 9 ¼ * 9 ½ range and the last trade on SX/SN is 35 cents.

  • The domestic crusher, like most years, attempts to be patient for the new crop supply.

Outlook:  Trading 3 to 4 higher as we begin a new month

Wheat

  • All three wheat markets show a mostly lifeless bounce overnight as neither the Chicago SRW nor HRW appears wanting to stay below $4.00 for too long.

  • The MGEx wheat market may be impacted by harvest as the holiday weekend is likely to bring a robust harvest. Some country elevators go cash or contract only as they manage logistics of the large, late harvest.

  • Deliveries of 275 HRW, no SRW and 909 MGEx.

  • Stats Canada will report 2016/17 ending grain stocks next week.

  • Argentina’s Buenos Aires Grain Exchange reports planting complete as they estimate a slightly larger production than last year.

Outlook: Trading 3 to 5 better…