AM Comments 8/26/15

Wednesday, August 26, 2015, 8:08 AM
Submitted by: Eric Kist

Good morning!


A quiet overnight trade has grain markets relatively flat this morning, as corn is up 1 and beans are ½ cent lower.  Following through from yesterday’s market action, it appears that US equity and commodity markets are attempting to separate themselves a bit from the current economic situation in China.


After dropping more than 11% at one point, major US equity indices are attempting to climb back, as they are 2% higher so far this morning.  While this stability is obviously ideal for US markets, it has also opened the door back up for the Dollar Index to rally again, which will continue to pressure the grain markets, especially in the export arena.


We did see a bit of increased activity in export sales for both corn and beans during the past few days due to weak prices, but weekly sales numbers are still a far cry away from meeting the USDA export target numbers.  Any momentum we can gain helps, and as we get closer to harvest in the US those export sales numbers are expected to pick up.


We’re all well-aware of the lower grain prices compared to the past several years, but the pinch on farmer’s bottom lines has now been quantified.  Updated Farm Net Income estimates from the USDA are the lowest in nine years, and are down 36% in relation to last year.



Opening calls

Corn: 2-3 higher

Beans: mixed


Have a great day!




« Back

© 2019 Landus Cooperative, All rights reserved.
Landus Cooperative
2321 North Loop Dr., STE 220
Ames, IA 50010
Find Landus Cooperative on
facebook icon twitter icon youtube icon blog icon