(Phil Knuth)
Good Morning. Corn futures were lower and soybean futures were higher overnight. September corn finished the overnight session off 4 cents, settling at 4.7050. November soybeans were up 9 ¾ cents, settling at 13.1725. In the outside markets, as of 7:45am: The US Dollar Index is up 300 points, trading at 103.140. September crude oil is off $1.02, trading at $82.17 per barrel. Precious metals are all lower. Industrial metals are all lower. The Electronic Mini-DJIA is off 18 points, trading at 35,333. Soybean futures managed to maintain some strength overnight, bucking pressure from the outside markets in favor of trading an extended forecast for the Corn Belt that has turned hotter and drier. On Friday, USDA released the monthly WASDE Report. Corn and soybean yield projections were the major figures traders were focusing on. Since both figures came out in the middle of the ranges of trade estimates, market reaction was rather subdued. Of course, when things come out at/near expectations, the path of least resistance is lower and that is exactly how futures closed at the conclusion of last week. Now, as we head into the last half of the month of August, the lion’s share of traders’ attention will be focused on private yield estimates (Pro Farmer Tour, etc.) and the impact of August weather on soybean yield potential. On Friday, the funds bought 1000 contracts of corn, bought 2000 contracts of soybeans, and were net even on wheat. They are now estimated to be net long 675 contracts of corn, net long 79,315 contracts of soybeans, and net short 71,020 contracts of wheat. From a chart perspective, September corn finds initial support at the new two-year contract low charted overnight, 4.70. Initial resistance is at Friday’s high, 4.9475, followed by the psychological 5.00 mark, and then 5.1625-5.1675, the July 31
st chart gap. November soybeans find initial support at the psychological 13.00 level, followed by Friday’s low, 12.9750, and then the 1 ½ month low charted on Tuesday, 12.8225. Initial resistance is at Friday’s high, 13.38, followed by 13.50, and then the chart gap from July 31
st, 13.7550-13.79. Opening calls are mixed. Following are weekend rainfall totals reported by River Valley Coop employees for their respective Coop locations and/or homes:
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| CITY |
COUNTY |
STATE |
RAIN TOTAL |
| MARTELLE |
JONES |
IA |
0.30 |
| OLIN |
JONES |
IA |
1.00 |
| STANWOOD |
CEDAR |
IA |
0.50 |
| LOWDEN |
CEDAR |
IA |
0.40 |
| DEER GROVE |
WHITESIDE |
IL |
0.15 |
| MANLIUS |
BUREAU |
IL |
0.30 |
| PRINCETON |
BUREAU |
IL |
0.20 |
| WYANET |
BUREAU |
IL |
0.14 |
| NEPONSET |
BUREAU |
IL |
0.20 |
| OSCEOLA |
STARK |
IL |
0.20 |
| CAMBRIDGE |
HENRY |
IL |
0.90 |
| GENESEO |
HENRY |
IL |
1.20 |
| GALVA |
HENRY |
IL |
0.22 |
| BRADFORD |
STARK |
IL |
0.20 |
| EDELSTEIN |
PEORIA |
IL |
0.20 |
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