Grain Tidbits - July 20, 2018

9:59 AM 7/20/2018

Thursday's weekly export sales report was supportive for corn and soybeans. Wheat sales were disappointing, but USDA does expect demand to increase in the later half of the season as world production declines vs. world demand growth.  

It seems the worst of the trade tariffs have been priced in. Strong demand and tightening world corn and wheat stocks are all offering support.

Crop condition ratings for corn and soybeans dropped sharply on Monday's USDA weekly crop progress report.  Missouri and Michigan took the biggest slide in ratings last week. The lowest ratings are in Texas and Missouri currently.

Soybeans in Minnesota had the largest decline in crop ratings this past week.  Missouri and North Carolina had the lowest overall ratings. Soybean export demand remains high for this time of the year, as our soybeans in the US are the cheapest in the world. 

Declining crop conditions in Europe and the Black Sea suggest export demand for US wheat should strengthen, but will remain soft until that time slot. 

The grain and soybean markets are higher this Friday morning in spite of the President saying he is ready to put tariffs on all $500 billion of Chinese imports. This would seem to indicate the worst of the tariff news maybe priced into the markets.

Thanks,
Jim