Grain Notes 7/23/21 PM Comments

PM Comments 
(Oliver Dion)
Good afternoon. Rough day to end the week with markets down sharply. September corn was down 17 1/4 to 5.4725 and December corn was down 18 1/4 to 5.43. August soybeans were down 23 to 14.1625 and November soybeans were down 27 1/2 to 13.6225. Outside markets say the dollar up slightly to 92.91, oil was up 16 cents to 72.07, and the Dow was up 238 points. 
  • USDA announced the sale of 100 tmt of new crop soybeans to Mexico this morning = 3.7 million bushels. This was the first bean sale announcement in two weeks when Mexico bought 220 tmt of new crop beans. Routine business overall.
  • Weather maps Sunday night will be critical to the market direction with focus on the rain amounts for the WCB and if the temps are to moderate late next week as forecast. Next major support for Dec corn toward $5.30 and then $5.10-5.00. Crop ratings on Monday progress report should see a slight increase nationally with traders watching to see where silking progress stands with next week’s hot temps.
  • Commodity Weather Group issuing their first yield report of the year, pegging the national crop at 181.3 bpa; this on the higher end of current market thoughts. Their projected range potential of 177-183 feels in tune with what the market is trading as a “floor” following favorable weather the past month.
  • Soybean demand from China remains quiet with negative crush margins and slowing meal demand from the pork sector there.
  • The spring wheat tour starts in North Dakota need week and lets be honest with as poor of crop conditions as they have its going to be sad to see the report yields. Plenty of fields were that are worth considering looking at. 
  • This afternoon’s CFTC report showed the funds were net buyers of 14k corn contracts to put them back long 223k contracts as of Tuesday night. Funds were also buyers of 13k contracts of beans to take them to 96k long and they also bought 20k of Chicago wheat contracts.

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Have a great night.