Morning Comments July 19, 2017
Wednesday, July 19, 2017, 7:07 AM
Submitted by: Landus Cooperative
Corn 4 to 6 higher
Soybeans 2 to 4 higher
Yesterday, the September corn contract closed 2 cents higher settling at $3.77. The December contract was 2 3/4 higher closing at $3.90 3/4. The trade is trying to assess the effect of the dry conditions and hot temperatures we have had during July on the national corn yield. The longer term forecast has added some rain and slightly cooler temperatures after the weekend.
The EIA weekly ethanol production report will be out this morning. The trade is looking for weekly production of between 290 and 295 million gallons. That would be down slightly from the previous week, but that is what tends to happen seasonally. The stocks are expected to decline as well this week. This is seasonal and we will also see a decline in gasoline stocks because of the summer driving pattern.
The August bean contract closed 4 1/2 higher yesterday settling at $9.89 1/2 and the November contract was 3 1/4 higher settling at $10.01 3/4. The trade seems content to add a little more weather risk premium in to the price of beans as there is still a lot of uncertainty as we head into the critical month of August.
This morning crude oil is trading higher. The August contract is trading just above the $46.50 level.
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