AM Comments 7/9/15
Thursday, July 9, 2015, 8:07 AM
Submitted by: Eric Kist
Markets are higher this morning on weather concerns and external market factors. Parts of Illinois, Indiana, and Ohio received roughly 1-2 inches of rain overnight, adding to already saturated conditions. Extended forecasts for the Midwest call for warm and dry weather for the Western Corn Belt, but predicts the Eastern Corn Belt will continue to see rain showers in the upcoming week.
The Chinese stock market and crude oil prices appear to be stabilizing a bit this morning after taking major steps back over the past few days, which is also offering support to grains this morning.
Yesterday the private Economics company Informa made a downward revision to its soybean acres and production estimates for Missouri, due to the inability to get soybeans planted in the state. Total bean acres were reduced by 1.0 million, and using a yield projection of 41 bushels/acre for the state, total soybean production was consequently reduced 41 million bushels. Informa’s total production number for the U.S. soybean crop now stands at 3.77 billion bushels. (Last year’s actual production number for the U.S. bean crop was 3.97 billion bu. – a record crop).
The USDA will be releasing its monthly S/D updates tomorrow morning. Many in the trade are wondering if the USDA will lower its 2015 production numbers due to unfavorable weather, but in past years it has been uncharacteristic for yield projections to be changed this early in the growing season.
Opening calls for today’s trade:
Corn: 1-2 higher