Morning Comments July 20, 2018
Friday, July 20, 2018, 8:07 AM
Submitted by: Landus Cooperative
Corn up 2
Beans up 6
Yesterday, the September corn contract closed 4 cents higher settling at $3.51 1/4, and the December contract was 4 cents higher closing at $3.65. Trade is starting to watch some dryness throughout Europe, Australia, and the U.S.; the dryness is weakening supply and turning demand to the U.S. ports. Other factors are continued strong ethanol demand and strong ethanol margins, and a belief in another reduction in crop conditions. Technicals are pointing higher, and this is spurring some short-covering rallies and bringing new buyers to the market. All these factors have corn trading higher on the overnight.
The August bean contract closed 3 3/4 cents higher yesterday, settling at $8.46, and the November contract was 3 3/4 cents better settling at $8.61 1/2. Yesterday beans traded down most of the session but recovered to close higher. Beans found support from the weekly export sale numbers, and even stronger meal sales, meal exports were more than double of the previous week’s record high. Meal is going strong because of the severe failure of the Argentine bean crop forcing sales to the U.S. Beans will continue to trade without major conviction due to the lack of trade resolutions and non-threatening weather during beans critical time.
All remaining Soybean Extended Price contracts will be sold at 1 pm today. Please be cautious of bike riders as RAGBRAI begins and will be traveling throughout Iowa and Landus Cooperative areas beginning Sunday. Have a great weekend.