Grain Notes 7/20/18 AM Comments - Troy Lust - INTL FC Stone

Lite short covering continues this morning as the extended forecasts dry out, but are cool.  Market was able to scratch above some important technical points this week, causing additional short covering.  Funds still estimated short 125k corn and 70k beans, so there is more room for more.  China sold 1.1 MMT of Reserve corn overnight, again only 28% of what was offered, and considerably cheaper than recent sales too, down to $5.30 per bushel.  Previous sales have been in the upper $5’s closer to $6. Our export corn offers remain competitive, so subsequent export sales Reports should be good. We need to get past Monday though, as the last several Monday’s have been pretty tough on the market. No additional political news, although Trump keeps upping the ante on Chinese goods that could have tariffs applied. China media now has a new cartoon character called “the Soybean” that pokes back at Trump and the potential trade war. You really can’t make some of this stuff up! 

Here’s the link if you would like to see it:
https://news.cgtn.com/news/3d3d414e7a45544f78457a6333566d54/share_p.html
 
Outside markets see the Dollar down 20, Dow futures down 85, Gold, crude oil and palm oil steady. Europe wheat and corn both up about a nickel on dry weather there. Dalian beans steady to slightly higher, meal up over $5 per tonne and corn steady to slightly weaker.
 
Iowa unfortunately is making the national news this morning with major tornado damage in Marshalltown, Pella and Bondurant.