Headlines:

  • Tires Create More Demand for Soybeans
    Goodyear and the soy checkoff partnered to introduce Goodyear’s Assurance WeatherReady tires for passenger vehicles. The tires feature a soy-based rubber compound, which will create another market opportunity for soybean oil. “Goodyear and the soy checkoff share something special: a commitment to innovation,” says John Motter, United Soybean Board chair and farmer from Jenera, Ohio. “When we started working with them more than six years ago, it was just an idea, a way to build demand for soybean oil. Now, we have a tire that shows what soy can do on the road.” “Any time we can find another use for soybeans, we’re creating a better demand,” says Motter. Goodyear’s interest in soybean oil included a look at sustainability, a priority for many corporations throughout the U.S. Sustainability wasn’t the only benefit for the soy-based rubber compound; the company also found a competitive advantage.
  • Brazil’s Farmers Will Cut Corn Acres Significantly
    When crop prices are so low, farmers always want reassurance of a profitable payout for their production. In Brazil, that payout has become too low. As a result, farmers are prepared to cut corn production in half this year. The South American country is about to finish harvesting a winter corn crop of nearly 97 million metric tons, according to the National Supply Company, and Brazilian farmers are also not happy at all with the cash paid. In an exclusive interview with Agriculture.com during the first day of the 40th edition of Expointer, a farm show near Porto Alegre (Rio Grande do Sul), Paulo Bertolini, director of the Brazilian Association of Corn Growers, anticipated that in his view, the first crop (the one that is about to be planted in Brazil) would have a surface reduction of nearly 50%.

Summary:

Buyers finally stepped in “en masse” on the last trading day of the month ahead of the Labor Day holiday weekend. This move up will in all likelihood be short lived but as mentioned previously our time cycles were calling for a potential short-term low that stands to run into the September 5th timeline (+/- a day or two).  At the close December Corn was 12 cents better and November Beans led the daily gains with a 13-cent price improvement. December Wheat rounded out the day with a 4.25 cent increase from its close yesterday. Damaged refineries in Texas may have prompted some Crude Oil futures buying. The December contract held the line at our key support band and rallied over a dollar today.

USDA Weekly Sales from today showed increased demand for Soybeans with it blowing way trade estimates at 1.682 million metric tons (mmt), estimates ranged from 650k to 1.5mmt. Wheat was pretty strong itself coming in near the top end of trade estimates at 556k mt. Estimated ranged from 300k to 600k mt. Finally, Corn was also close to the top end of trade expectations that ranged from 450k to 1.0 mmt. Additionally, private exporters reported export sales of 132,000 mt of Soybeans for delivery to unknown destinations during the 2017-2018 marketing year to the USDA today.