Soybeans Lower on Wet Short Term Outlook
Aug 01, 2014
This morning we have September corn trading down 2 cents, September soybeans trading down 5 ½ cents and September soybeans down 10 ¼ cents.
The weather forecast has shifted to a slightly wetter outlook for the southwest parts of the grain belt, but there are still areas in North Dakota, southern Nebraska and northern Kansas that could miss out some of the showers. Dryness has been developing throughout Nebraska, Iowa, Minnesota and Illinois has the chance of impacting soy yields until more substantial precipitation is received next week. In the longer term 16-30 day outlook the northwest could experience drier than average weather which could strain the soybean crop which has put down shallow roots due to the wet spring.
Non-farm payrolls were released this morning, coming in slightly below market expectations. The U.S. economy created 209,000 jobs in July, below the 235,000 expected by the market. This was the sixth straight month with job creation above 200,000 – the first time that has happened since 1997. Unemployment increased a percent to 6.2%. In 2014 the economy has created 230,000 jobs per month on average, up 19% from the pace seen in 2013. S&P 500 futures are trading up a percent following the report. To add the September S&P 500 futures to your trading platform, add the symbol ZSU4.