Morning Comments September 5, 2018
Wednesday, September 5, 2018, 8:09 AM
Submitted by: Landus Cooperative
Corn down 1 to 2 cents
Soybeans down 2 to 3 cents
Yesterday’s crop progress report dropped the G/EX rating for corn 1% from last week to 67%. This is still 6% above where we were at this time last year. 22% of the corn crop is mature, compared to 10% last week and 11% last year/average. December corn futures closed up 3 1/4 Tuesday at $3.68 1/4, this strength was most likely moderated from low prices in the wheat market. Funds are estimated to be net short around 30,000 contracts at this point. It is not uncommon to see a post-Labor Day rally, and this year was no different as export demand remains strong and USDA’s yield projection is questioned. Trade will be watching the 1.6 billion bushel carryout with the idea that a number that low should be motivation for stronger prices in the coming months.
The soybean market traded both sides of steady yesterday, ending the trade day fractionally mixed with the November contract 3/4 higher at $8.44 1/4. The crop progress report left the G/EX rating unchanged at 66%, 5% higher than this time last year. Soybeans dropping leaves are at 16%, well ahead of the 9% average. Trade is keeping a close eye on the Argentinian tax situation. We struggle to find bullish ground in the soybean market.
Have a good day and try to stay dry!