AM Comments 9/8/15
Tuesday, September 8, 2015, 8:09 AM
Submitted by: Eric Kist
Grains are higher after a long weekend, as corn is currently up 5 cents and beans are up 8 at the morning pause. Many fund managers and speculators appeared to have positioned themselves neutrally before the 3-day weekend in order to manage risk from any large moves from the Chinese economy when US markets were closed. With the US $ lower, and world equity markets bouncing higher this morning, funds are getting back in the grains, leading us higher so far this morning.
In terms of fundamentals, this afternoon’s weekly crop progress report is expected to show 1-2% declines in good/excellent ratings. Recent hot temperatures have sped up the maturation process of crops, and potentially has taken the top off an otherwise great-looking crop locally. Harvest activity is being reported from southern producing areas, as well as some in the eastern corn belt, and early yield numbers so far have been reportedly at or below expectations thus far. This Friday the USDA will release its monthly Supply & Demand report, including its yield estimates.
Corn: 5-6 higher
Beans: 8-9 higher
Have a great day!