AM Comments 9/1/15
Tuesday, September 1, 2015, 8:09 AM
Submitted by: Eric Kist
Markets are lower as we head into today’s trading session, as grains are being pressured by lower crude oil prices and a decline in equities. The Chinese economy is once again sending ripples through world markets, after the countries updated monthly manufacturing index showed another contraction from last month, and is now at its lowest level in the past 3 years. This of course has the Chinese Shanghai Index under pressure, and is having a spillover effect on US equities.
Yesterday’s weekly crop conditions report came is fairly steady compared to the trade’s expectation of both corn and bean rating declining a couple percentage points. Nationally, the soybean crop rating was unchanged at 63% Good/Excellent, while corn did show a 1% decline, decreasing from 69% G/E to 68%. Locally, Iowa corn and bean ratings both decline by 1% - corn is not rated as 81% G/E, and the soybean crop is now rated as 76% G/E.
Further declines over the next few weeks leading up to harvest are expected, as abnormally hot temperatures are expected to take the top off of what is presently a great looking crop. Locally in Central Iowa, meteorologists are forecasting that the Des Moines Metro area will experience the longest string of 90+ degree days of the summer!
Corn: 3-4 lower
Beans: 8 lower
Have a great day!