MarketEdge PM Comments
Jul 25, 2023
(Mike Moellenbeck)
Grain prices closed lower but were well off the lows. Corn was down 3 cents and beans were down 4-8 cents. Corn was down 10 cents and beans near 20 cents lower following the overnight session.
Grain prices closed lower but were well off the lows. Corn was down 3 cents and beans were down 4-8 cents. Corn was down 10 cents and beans near 20 cents lower following the overnight session.
- Soybeans were supported off the lows as Midwest weather for the first week of August shows reduced chances of rain versus last night projections with hotter temperatures. Beyond that rain chances are spotty at best.
- Despite the lower soybean prices, soybean oil and meal closed higher in the nearby months as crush margins remain strong, improving 28 cents.
- Some rumors that China is looking at some PNW and CIF beans, but nothing confirmed. We have been hearing these rumors for a while now. The US should start doing China business for new crop as their purchases lag last year by 6 million metric tons.
- Damage from Russian bombs on Ukranian export facilities and storage sites are still being assessed and better understood by the market. Putin confirmed today that they have no intentions of renewing the Black Sea grain deal without Ukraine meeting their demands.
- Yesterday's crop condition report showed a net decline of 1% to arrive at 54% good to excellent. This is 9 points below average. Missouri, Minnesota, Tennessee, and North Dakota were the biggest contributors to the US’s national decline.
- For corn, the crop ratings were unchanged at 57% good to excellent this week. Declines in Iowa, Minnesota and Missouri offset gains in the rest of the Midwest. The average good to excellent rating for this week 65%.
- Brazil’s safrinha corn harvest is 47.9% complete.