We have seen December 10 corn futures setting a series of new contract highs this week. When will the corn futures rally end? It is anyone’s guess, but today future prices appear to be a little more cautious. Labor Day week end always seems to trigger a swing in the futures one way or the other, from past history.
LET’S LOOK AT SOME OF THE MAJOR NEWS EVENTS TAKING PLACE THIS WEEK.
1.) Monday wheat futures ran higher on news of the expanded dry weather taking place in Western Australia. Western Australia usually produces about 50% of Australia’s wheat exports.
2.) Early corn yield reports from southern Illinois have been disappointing. Did the hot nights hurt the corn crop, more than expected?
3.) Weekly Export Inspections: 45.3 million bushels of corn and 7.2 million bushels of soybeans.
4.) Last Monday afternoon, USDA reported that 73% of the US corn crop was dented verses 55% on 5 year average. Soybeans were reported @ 8% dropping leaves verses 7% on 5 year average.
5.) Wednesday, the Argentine Corn Growers Association is looking for an 18% increase in corn production.
6.) Wednesday, USDA announced that a German wheat miller purchased 20,000 tons of US HRS wheat. This is the 1st purchase by Germany in over 3 years.
7.) Mid-co reported that JP Morgan Chase & Co. had shut down their proprietary trading desk. The big traders of the past are going back to their core business.
8.) Wednesday, Crude Oil and the Dow Jones started to rally, while the US Dollar broke 800 points. This lead to the strong rally in the grain markets.
9.) Des Moines Register reported that Iowa’s State climatologist Harry Hillaker has found Iowa to be the wettest on record, for June/July/August.
10.)The big futures rally on Wednesday led to some weaker basis levels. River corn basis fell the hardest followed by some dry mill corn processors.
11.)Thursday, Export Sales were reported @ 66.53 million bushels of corn and 22.52 million bushels of soybeans. Export sales remain very strong.
12.)Today the UN’s FAO called for a grain meeting in Rome on September 24th to discuss world grain supplies.
13.)In the 2nd Quarter non-farm productivity fell 1.8%. This is one of the largest drops in over 4 years.
14.)Hurricane Earl is still headed up the east coast. Stay tuned as to how much damage is done to the crops along the east coast.
A LOOK AT THE WEEK AHEAD:
1.) Tuesday USDA will release export inspections & crop progress reports. Friday USDA will release Export Sales Reports and Monthly Supply/Demand Reports.
2.) AgVantage FS is a division of GROWMARK, Inc. and has very competitive grain bids. Check out our grain drying and storage programs. Have a great Labor Day Weekend!
Thank you,
Bill Strother
The information contained in this report is believed to be reliable but is not guaranteed to accuracy or completeness by AgVantage FS a division of GROWMARK, Inc., MID-CO COMMODITIES, Inc., or GROWMARK, Inc. This report is provided for information purposes only and is not relied upon for specific trading in commodities herein named.
