Morning Comments August 17, 2017
Thursday, August 17, 2017, 8:08 AM
Submitted by: Landus Cooperative
Corn trading 1 cent higher
Soybeans trading 6-7 higher
Corn trading just slightly higher this morning after trading 1-2 higher on the overnight. Corn market sold off again yesterday and hit 11 month lows. Only good thing about yesterday’s corn trade is that we didn’t close on the lows. Weekly ethanol production came in higher than expected at 311 million gallons vs 298 million gallons last week. This took ethanol stocks up by 20 million gallons. With the August USDA report in our review mirror, we return to trading weather. Nice rains moved across the WCB, leaving behind rainfall in areas that need it pretty badly. The Southern Plains have some systems moving through this morning. News out of the Dakotas suggests that their conditions aren’t as catastrophic as previously thought. Producers in the Northern Plains have caught some very important rains the last few weeks, giving yield prospects some hope.
Soybeans trading higher this morning after trading either side of unchanged on the overnight. There is good support for beans around the $9.20 area. Beans closed unchanged yesterday after trading either side of unchanged throughout the day. Export sales were mildly friendly this morning. All-in-all, we will continue trading weather and weekly fundamental inputs until we get into the fields 8-12 weeks from now. Worth acknowledging is the widely followed Pro Farmer Crop Tour (now called the Farm Journal Tour). This tour can shed some light on yield expectations. However, one must be cognizant of the fact that any private tours may produce different yield results than what USDA projects. For better or worse, we have to recognize the fact that USDA’s projections are the most important yield input the market leans on.