Ahead of the Open: Beans Leading Strength in Chicago on Improving Demand

Posted on 08/24/2018 8:20 AM

Grain Calls 

Corn: Mixed

Soybeans: Up 3 to 4 cents

Wheat: Down 2 to 3 cents

 

On the final day of the Pro Farmer Midwest Crop tour, scouts found average Iowa corn yield potential of 188.20 bu. per acre, up 4.7% from year-ago levels but well shy of USDA’s yield peg for the state. Minnesota marked the only state on this year’s Tour where yield potential was down from year-ago levels, with samples resulting in an average yield of 178.67 bu. per acre, down 6.7% from last year. Pod counts in Minnesota came in at 1,090.47, up 6.9% from last year on Tour.   Iowa corn yields measured at 188.2 bu., up 4.7% from last year’s tour findings. Pod counts in the state measured 1,209, up 10.6% from last year.  The tour is over and we will be release our U.S. crop estimates after the close tonight.

 

Corn prices seen support by short covering ahead of the weekend as this week’s active fund selling slows. Farmer selling from both U.S. and global markets also slows after early week sales depressed prices. Export sales continue to be active and lower prices will only help to spur additional buying into 2019.

 

Soybeans seen rising on reports a third vessel of U.S. soybeans was unloaded in China this week. The unloaded cargo means China crushers are willing to pay the tariff to get soybeans. U.S. exports continue to be active for both beans and meal and more will be needed. USDA announced 146,000 MT sold to unknown destinations for delivery in the upcoming marketing year that begins Sept. 1

Wheat futures called lower on sluggish export demand and weak charts.

 

Livestock Calls

Cattle:  Steady to lower
Hogs: Lower

 

More lower cash meat trade on Thursday will keep up the pressure on hogs and cattle. Trade should be slow ahead of the weekend and the USDA release of the monthly cattle on feed report.  Traders looking for a 4.5% jump in cattle in feedyards

Hogs looking ugly, technically.  Market has shrugged off a fourth finding of African swine fever yesterday. The  market is taking a wait and see attitude toward and increased in China buying of global pork supplies.

Add new comment