CORN
- Corn is trading lower at midday as a favorable weather forecast through early next week continues to pressure the market, outweighing support from strength in crude oil prices. December corn is down 5 cents at 4.75-1/2.
- The latest weather forecast calls for beneficial rainfall across the heart of the Midwest, including Iowa and Illinois, over the next week, along with cooler temperatures. The improved outlook is easing concerns about crop stress and further deterioration in crop conditions.
- Weather in the EU remains a supportive factor for grain markets, as only scattered showers are expected across Eastern Europe while hot and dry conditions persist in key western growing regions, raising concerns about crop development and yield potential.
- Ethanol production rebounded to 330 million gallons, up from 322 million the previous week while up 2.5% from the YA.
SOYBEANS
- Soybeans are sharply lower at midday as an improving weather forecast pressures the entire soybean complex. September soybeans are down 23 cents at 11.81-3/4.
- An improving 7-day weather forecast, featuring widespread rainfall and cooler temperatures across the Midwest and eastern Plains, is pressuring soybeans by easing concerns over yield losses and tighter ending stocks.
- China is expected to auction 500,000 metric tons of 2022–2025 soybean reserves this Friday, likely to make room for incoming U.S. shipments.
- Brazilian soybean prices have been rising, making U.S. soybeans more competitive, though Argentina remains the lowest-priced supplier.
WHEAT
- Wheat is trading split at midday as ongoing geopolitical tensions continue to provide support to the market. December Chicago wheat is down ¼ cent at 6.79-3/4 while December Kansas City wheat is up 4-1/4 cents at 7.46-1/4.
- Additional overnight attacks on Black Sea ports, along with Ukraine’s strike on a major Russian Rosneft refinery, are providing support to the wheat market.
- A Ukrainian farm group warned that slow exports are creating on-farm grain surpluses, depressing prices and increasing the risk of farm bankruptcies.
- EU wheat exports in July are projected to be 61% below last year’s pace, while overall EU wheat production is estimated to be down 8%, providing underlying support to prices.
- Pakistan announced plans to import 1 million metric tons of wheat to strengthen its food security reserves.
Author
Lauren VandenLangenberg