Fccoop

MARKET COMMENTARY

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!

 

@fccoopgrain

 

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