Monday, September 26, 2016

Agricultural Commodities: Corn, Wheat Soybeans Fall Again

Last Chg
Corn 329-0s-7-4
Soybeans 945-2s-9-6
Wheat 396-0s-8-6

The big three are all within a few percentage points of recent lows, again.*
Corn and wheat are flirting with life-of-contract lows.

From Agrimoney:

PM markets: grain futures fall back, as US turns drier

Corn futures tumbled, as US weather forecasts suggested that the US Midwest will turn drier, allowing the harvest to pick up pace. 

The harvest got off to a slow start this year, due to wet weather, and there were fears that if the wet weather persists disease problems could develop.

US harvest progress due to be released this afternoon to show the harvest about 15% complete, compared to an average of 25% at this time of year. 

Harvest pressure
"Harvest activity is expected to pick up pace this week," said Brent Hasbargen at CHS Hedging.
"This week traders will be closely monitoring harvest progress and actual yield reports coming out of the field," said Mr Hasbargen. 

"Look for harvest progress to ramp up if the weather turns dryer which could add a little pressure to the market," Mr Hasbargen said. 

Drier outlook
And that drier weather is on its way, according to the latest forecasts. 

"Showers will favour the eastern Midwest over her next few days, but drier weather should prevail over the Central US this week, favouring corn and soybean drydown and harvesting and allowing wetness to ease across the north-western Midwest," said Kyle Tapley at MDA Weather Services.
The dry weather should continue into the 6-10 day period, but rains should return to the north-western Midwest late in the 6-10 day period," Mr Tapley said. 

US corn export expectations were reported at 1.34m tonnes, compared to 1.30m tonnes last week.
December corn futures finished down 2.3%, at $3.29 a bushel, breaking back below the 20 and 40-day moving average....

*Here are soybeans as the most extreme example viz recent prices: