Morning Comments August 31, 2017
Thursday, August 31, 2017, 8:08 AM
Submitted by: Landus Cooperative
Corn up 1
Beans up 1-2
Yesterday, the September corn contract closed 4 cents lower settling at $3.29 ½, and the December contract was 3 ¼ cents lower closing at $3.45 ½. Fund selling and the closing out of cash contracts kept the pressure on the corn market yesterday; interesting fact is that last year (2016) the September corn contract bottomed out at $3.10. Ethanol levels dropped by 9,000 barrels a day but production remains near record levels.
The September bean contract closed 7 ¾ cents lower yesterday, settling at $9.23, and the November contract closed 4 cents lower, settling at $9.33 ¼. Beans prices have dropped to levels that are attracting Chinese demand and could be supportive of the market. World GDP is expected to climb 2% in 2018, and positive GDP rates could incite more demand for ag exports adding support. Interesting Fact- Harvey has knocked out almost ¼ of the nation’s fuel output due to closed refineries and reduction in offshore output.