AM Comments 08/08/14
Friday, August 8, 2014, 8:08 AM
Submitted by: Dustin Weiner
The markets are mixed this morning with corn down a couple cents while soybeans are flirting with both sides of yesterday’s close. Weather forecasts have shifted a bit wetter for next week, mainly for the Eastern Corn Belt. Late next week the Southern Corn Belt is also supposed to get some moisture (Missouri, Southern Illinois).
The grain trade seems to be spending a lot of time talking about Putin and Russia/Ukraine… Lately Ukraine seems to be winning the battle, slowly squeezing the Russian rebels out. This puts Putin on a bit of a timeframe to where he will either have to pull back or invade. In theory one of those moves would be neutral/bearish to our grain prices (pulling back) while the other would be friendly to grain prices (invading). On Wednesday the thought/fear was that an invasion was inevitable - which helps explain the 7c rally in corn that day (which has since all but disappeared).
Tuesday (Aug 12) is the next release of the USDA’s Production and S&D report. This production report will be the first estimate based on field surveys and farmer input (everything before this appeared to just be plugging in trendline yields). It seems obvious that projected corn production will increase, the question is by how much?
Corn down 2-3 cents
Have a great day!