AM Comments 8/9/2016
Tuesday, August 9, 2016, 8:08 AM
Submitted by: Joel Pudenz
Overnight trade was a bit choppy in the corn and soybean space with both commodities trading both sides of even. Corn bulls finally got what they were hoping for in weekly crop ratings yesterday afternoon. The USDA took 2% off the national Good/Excellent ratings which now sit at 74% (well above average, 4% ahead of last year). Many anticipate a bump in yield in Friday’s S&D report. A valid argument can be made that this “anticipated bump” may be priced into the market already, but we have three full days to navigate as traders position themselves for Friday morning.
Soybean crop conditions were unchanged from last week (72% G/E). The soybean sphere continues paying close attention to the recent string Chinese purchases after another announcement yesterday of new crop sales to our largest buyer. Similarly to corn, the market expects a bump (.5 to 1.5) in yield expectations on the S&D report Friday morning. We will have to see how the trade digests expectations of a growing soybean crop, stronger demand prospects, and August weather forecasts that are a bit dryer than some are comfortable with.
Corn – 1 to 2 cents lower
Soybeans – 6 to 7 cents lower
Have a great day!
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