Morning Comments September 7, 2018
Friday, September 7, 2018, 8:09 AM
Submitted by: Landus Cooperative
Corn down 1
Beans down 2
Wheat down 4
Yesterday, the September corn contract closed 1 ¾ cent higher settling at $3.53 ½, and the December contract was 1 cent higher closing at $3.66 ¼. Strong ethanol grind and lower ethanol stocks gave corn some strength yesterday, but lower wheat kept a cap on it. There is an evolving story surrounding world feed grains (wheat shortages in EU/Australia, export taxes in Argentina) – the flavor seems to change on a daily basis. We are keeping a close eye on U.S. corn and U.S. wheat exports – traders are finding homes for U.S. feed grains that historically haven’t worked before (corn to Egypt & Saudi Arabia… areas typically serviced by the Black Sea Region).
The September bean contract closed 1¼ cent higher yesterday settling at $8.26 ¾, and the November contract was 1¼ cent higher settling at $8.39 ¼. Beans traded higher on technical indicators but are lower today as no fresh news gives them direction. Informa came out with big yields on beans and next weeks’ WADSE report could show bigger yields putting pressure on beans. Combines are starting to roll in the South and trade is waiting to hear yields.
There is a developing story in Iowa City this morning. Tornado sirens are spontaneously erupting with ear-piercing howls as Cyclone nation descends upon the town. Be advised – any Hawkeye fans in the immediate area should seek shelter immediately!