Friday, July 31, 2020
Closing Markets: Corn EVEN Old & New. Beans +4 Old & New. Wheat +2.
TFG will be extending free DP from July 31st to August 31st. Please call your local TFG office if you have any questions. Thank you for your business!
Market Recap:
Corn futures ended the day mixed. CU and CZ both closed the session a ¼ cent firmer. For the week, CU lost 10 ¼ cents and CZ was 8 cents weaker. For the month, CU was down 25 ½ cents and CZ lost 23 ½ cents. USDA announced sales of 114,300 tons of corn for delivery to Mexico during the 20/21 marketing year this morning. There were no sales announcements to China. Although, Chinese corn purchases for 20/21 now total 5.7 MMT, which is 81% of USDA’s 7 MMT corn import projection for the country. New crop U.S. corn sales are strong at 331 mln. bu., a 15% increase from a year ago. Current U.S. weather maps are causing little excitement in the marketplace. Most forecasts are calling for moderate weather to begin the month of August, which should generate favorable conditions for ear fill on corn. NASS will be out with updated crop progress/condition ratings Monday afternoon. Most recently, the U.S. corn crop was rated 72% good to excellent with just 7% of the corn crop rated poor/very poor.
Soybean futures closed the session higher today, as funds continued to add to their long position. November futures settled up 4 ¼ cents. For the week, SX lost 6 ¾ cents but closed the month 10 ¼ cents firmer. Although there have been no flash soybean sales since Monday, U.S. bean exports sales for 20/21 currently stand at 7.6 MMT. Yesterday’s 3.34 MMT weekly new-crop bean sales total marked the strongest weekly bean sales week in more than eight years. Despite increased tensions between China and the U.S., demand for U.S. export beans is expected to remain strong the balance of the summer and into the fall/early winter as Brazilian supplies are less plentiful and more expensive. Weather conditions look mostly favorable for pod setting and filling on soybeans in the coming days. NASS will be out with updated crop progress/ condition ratings Monday afternoon. Most recently, the U.S. soybean crop was rated 72% good to excellent; with just 6% of the bean crop rated poor/very poor.
Have a great evening!!!!
Chelsey White
Emery Manager & Originator:: Topflight Grain Cooperative, Inc.
593 Emery Rd :: Maroa, IL 61756
Phone:: 217-794-2240
E-Mail:: cwhite@tfgrain.com
Web:: www.topflightgrain.com
This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by Topflight Grain Cooperative, Inc. Topflight Grain is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable but is not guaranteed as to its accuracy. Contact Topflight Grains designated personnel for specific trading advice to meet your trading preferences. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by Topflight Grain Cooperative, Inc. ... See MoreSee Less
3 days ago
Friday, July 31, 2020
Morning Markets: Corn EVEN Old & New. Beans +3 Old & New. Wheat +2.
TFG will be extending free DP from July 31st to August 31st. Please call your local TFG office if you have any questions. Thank you for your business!
MARKET SUMMARY:
The main activity in today's trade will be month end positioning. This will be more of a case for soybeans where the August contract goes into delivery. While much of the repositioning has already been done, there are always a few contracts left to move. What may be more of a factor for grains and oilseeds is month end positioning in the financial markets. The US dollar has dropped to its lowest level in two years and gold has rallied to its highest value in recent history, so to see a correction would not come as a surprise. This could impact commodities more than normal given the recent involvement of funds in the market. Once the calendar turns to August, we will start to see more attention on weather and how it relates to soybeans. Current weather forecasts indicate mostly favorable conditions, and as a result, we have started to see private yield estimates rise. Unless an issue develops soon, these may also be altered in the USDA WASDE reports as well. One regions of the Corn Belt that is being monitored is Western Iowa where a pocket of dry soils is being reported. This may not be enough to negate the improved conditions being seen in other areas, however.
Crude Oil is up $0.19 at $40.11.
US Dollar is down $0.172 at $92.849.
Global Equities: Japan -2.8%, China -0.5%, and Europe +0.3%.
Dow futures is up 57 points at 26,275.
EU MATIF Exchange: Corn +0.3% and Wheat +0.3%.
Malaysian Palm Oil: +1.2%.
Dalian: Corn +0.7%, Soybeans +1.3%, Meal +0.2%.
WEATHER:
• The weather models are showing the southern 2/3rds of the Midwest being cool and wet while areas north of I-80 see limited rains, although some models are hinting of a rain event next week for western Iowa. The models shift rain northward into the 2nd week of August, thus providing additional rain chances for the droughty areas of the WCB.
OTHER HEADLINES:
• WEEKLY EXPORT SALES:
o Corn: -29,000 mt vs trade estimates of 200 – 600; sold 97% of USDA estimate vs 98% average
o Soybeans: 258,000 mt vs trade estimates of 300 – 500; sold 104% of USDA estimate vs 101% average.
• Deliveries against August futures consisted of 24 lots meal and 412 lots soybean oil. There were no soybean deliveries.
• Monday’s Fats and Oils report is expected to show June soybean crush at 177.8 million bushels. If realized, it would be the biggest June crush on record, eclipsing the previous record of 169.5 million bushels set in June 2018. But it would be down from a May crush of 179.5 million bushels and the smallest monthly crush since February.
• The Hong Kong government has postponed September's parliamentary elections by a year, saying it is necessary amid a rise in coronavirus infections. However, the opposition has accused the government of using the pandemic as a pretext to stop people from voting.
• The US dollar index is trading at a 2-year low while gold futures are sharply higher and making new all-time highs.
EXPORT NEWS:
• Export sales of 114,300 metric tons of corn for delivery to Mexico during the 2020/2021 marketing year.
• Export sales of 222,000 metric tons of soybean cake and meal received in the reporting period for delivery to the Philippines during the 2020/2021 marketing year.
Have a great day!!!!
Chelsey White
Emery Manager & Originator:: Topflight Grain Cooperative, Inc.
593 Emery Rd :: Maroa, IL 61756
Phone:: 217-794-2240
E-Mail:: cwhite@tfgrain.com
Web:: www.topflightgrain.com
This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by Topflight Grain Cooperative, Inc. Topflight Grain is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable but is not guaranteed as to its accuracy. Contact Topflight Grains designated personnel for specific trading advice to meet your trading preferences. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by Topflight Grain Cooperative, Inc. ... See MoreSee Less
4 days ago
