Headlines:
- OVERNIGHT RALLY STALLS AS DOLLAR STRENGTHENS
AN OVERNIGHT RALLY IN GRAINS STALLED ON TECHNICAL SELLING, AND A STRONGER DOLLAR, AHEAD OF TUESDAY‘S WASDE REPORT. GRAIN PRICES WERE UP IN OVERNIGHT DEALS, AS MARKETS CONTINUE TO BE CONCERNED OVER IDEAS THAT HOT DRY WEATHER IN THE US MIDWEST WILL HIT CROPS THERE. SOYBEANS, IN PARTICULAR, HAVE BEEN BENEFITING. “WEATHER FORECASTS SHOW POTENTIAL HEAT AND DRYNESS TOWARD THE END OF THE MONTH POSING A THREAT TO SOYBEAN DEVELOPMENT,” ACCORDING TO REPORTS. “THIS HAS PROPPED UP THE SOYBEAN MARKET,” SHE SAID. AND COMMERZBANK NOTED THAT ON FRIDAY “FIGURES SHOWING CONTINUED HIGH DEMAND FOR US SOYBEANS WERE PUBLISHED“. “SOYBEANS FROM THE PREVIOUS CROP ARE IN PARTICULAR DEMAND NOW THAT SUPPLY FROM SOUTH AMERICA IS TURNING OUT TO BE LOWER THAN HAD LONG BEEN ANTICIPATED.”
Summary:
Corn and Soybeans futures rose in overnight and early morning trading with initial prospects of weather forecasts calling for hot and dry weather starting later this month. Those gains were short lived with producers and speculators selling into the price advance sending Corn, Wheat and Soybean lower on the day. December Corn was up as much as 5.50 cent on the day and November Beans reached a high watermark positive gain of 19.50 cents on the day. Even September Wheat enjoyed intraday gains at 7 cents. For now all eyes are focused on the WASDE report due for release tomorrow.
Today Corn and Soybean export inspections topped expectations but Wheat failed to meet expectations. Corn inspections were down 163,079 MT from last week at 1,357,903 MT. Inspections for the 2015-16 marketing year are running 4.0% behind a year ago. USDA’s 2015-16 export forecast of 1.825 billion bushels is down 2.1% from the previous marketing year.
Wheat inspections were down 195,931 MT from the previous week coming in at 375,279 MT. Inspections for the 2016-17 marketing year are running 41.0% ahead of a year ago. USDA’s export forecast for 2016-17 is up 16.1% from last year at 900 million bushels.
Soybean inspections were up 181,146 MT from the previous week at 374,016 MT. Inspections for the 2015-16 marketing year are running 7.1% behind a year ago numbers. The USDA’s 2015-16 export forecast down 4.5% compared to a year ago at 1.760 billion bushels.
