Grain Tidbits - August 17, 2018

10:44 AM 8/16/2018

The market rally due to proposed meetings between the US and China to be held in late August, was a welcome sight after last week's disaster of a crop report.  The Chinese delegation will meet with an American group at the invitation of the US. It is also important to note that many emerging market and commodity based currencies have stabilized after being on extremely shaky ground.  There is also optimism a trade deal with Mexico can be reached in a couple of months.

European Union milling wheat futures continue to move higher and are offering support to US futures. Technicals in wheat are leaning negative, although weekly export sales and shipments for wheat were quite good.  Their is talk that Russia is considering limiting wheat export volume.  French milling wheat futures are poised to close at contract highs.

Despite the prospects of the US corn crop, the developments in the corn market the last couple of days are offering some much needed strength.  Combined old and new crop corn sales were also very good. Many areas are seeing corn maturing up to 15 days early, along with soybeans maturing earlier as well.

Old crop bean sales were positive despite cancellations of orders.  Meal sales were good. Soybean planting begins in one month in Brazil. Brazil FOB soybean prices for November delivery are running nearly $2 per bushel above US Gulf FOB prices.   

Weather for the US is generally viewed as favorable with decent rains forecasted for much of the Midwest.  Temperatures are expected to be moderate for much of the Corn Belt.  The Northern Plains are expected to remain dry, which will continue to take a toll on our row crops.  It is expected that the European Union will remain dry, which continues to limit production potential for their late crops.

Thanks for your patronage.

Jim Gallagher

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