PM Comments 9/8/2014
Monday, September 8, 2014, 3:09 PM
Submitted by: Joel Pudenz
Rain is falling here in Central Iowa as we stare at another day or two of precip. and a two-week outlook of colder temperatures. During the overnight trade, corn, soybeans, and wheat all traded higher on fears of frost. All three commodities eventually turned lower as the market realized temps won’t get cold enough to damage/shrink physical crop size. Crop ratings were within market expectations this week, holding steady from last week for both corn and soybeans. Corn is rated at 74% G/E nationally and soybeans are 72% G/E nationally. In like manner, Iowa corn was steady vs. last week at 76% as were soybeans vs. last week at 73%. This is likely a neutral/negative input as we roll into to harvest with record production potential coming closer and closer to realization every day.
It’s been a wild ride for old crop bean basis – domestic supplies are extremely tight and bean crush margins remain lucrative. Gulf and interior basis levels are easing up, indicating basis may have already peaked. Additionally, some interior end-users already shut down or have indicated shutting down to wait for more beans to hit the market here in a few weeks.
Corn closed 7 cents lower
Soybeans closed 13 to 16 cents lower
Have a good night!