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The Grain Hedge Team provides a macro-focused daily view of the world’s grain markets. Kevin McNew received a bachelor’s degree from Oklahoma State University and his master’s and Ph.D. degrees in Economics from North Carolina State University. He spent 10 years as a Professor of Economics with the University of Maryland and Montana State University focusing on commodity markets and is widely regarded for his ability to boil-down complex economic situations into easy-to-understand concepts for applied life.
In the overnight session the grains were mixed with December corn down 1 cent, November soybeans unchanged and December wheat down 2 ½ cents. Precipitation is expected to pass back over the Midwest from Thursday through Saturday which should continue to slow harvest pace. The forecast clears up favoring harvest in the 6-10 and 11-16 day precipitation forecasts.
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According to a Reuters article published this morning China’s soybean imports from the United States are expected to be delayed for at least two weeks as exporters struggle to find soybeans that meet quality specifications. Quality has been a huge challenge because early harvested soybeans are sourced out of the Mississippi Delta which suffered crop damage from the recent Hurricanes. The scarcity of soybeans that meet quality specs in the Gulf region has caused delays at the U.S. Gulf shipping terminals as waiting times have grown to 10-12 days, which is above the usual 5 days during this time of year. This situation is made worse by the low water levels along the Mississippi and delays in barge traffic which have driven barge rates sharply higher.
Recent precipitation has aided soil moisture in 80 percent of Brazil’s corn and soybean planting areas. The slow transition out of the dry season had slowed initial planting pace, but recent moisture has helped the situation. The next 10 days show little signs of moisture and any precipitation will be isolated to the southern regions of Brazil through the middle of the month.
Egypts GASC announced this morning that they purchased 180,000 metric tons of Russian wheat.
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