The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
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.
Grains had more losses overnight with soybeans leading the complex lower on a 20-cent slide.
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Weather models have started to lessen the heat impact in the Plains for the coming two weeks. In addition, scattered rains could provide some modest relief in some of the drier areas. The drought monitor this morning showed mild expansion of the drought over the past week in Iowa but with more intense expansion in SD/ND/MT.
Yesterday’s USDA report showed better than expected wheat production by a small margin but combined with lower feed use and exports, this led to carry-out being raised to 938 MB up from 924 last month and well above 876 expected by the trade going into the report. For corn and beans, USDA left their yield forecast unchanged from their trend estimate, albeit even though crop conditions are subpar compared to normal.
Export sales were mixed this morning with new-crop corn and soybean sales beating expectations. But old-crop corn was disappointing coming in at a meager 161,000 MT vs 300-500,000 expected.
Weekly Export Sales-
Wheat - NC
Corn - OC
Corn - NC
Soybeans - OC
Soybeans - NC
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