Headlines:
- Wheat futures slump as funds shift into reverse
The frantic fund activity that has been driving grain markets in recent sessions changed direction on Tuesday, as wheat plummeted on heavy global supply, while soybeans bounced back. Wheat markets appear to have had a sudden reality check over the sheer quantity of wheat around. Water Street Solutions noted “the large global supplies and better than expected production coming out of the US winter wheat crop and the Russian and Black Sea regions”.
Summary:
The crop ratings for Corn and Soybean are unchanged but the recent heat has caused a bit of a decline in soil moisture. Last week the National topsoil moisture was at 70% as of this past July 24th the moisture rating experienced a 3% percent decline coming in at 67%. While 67% is still a strong number for this time of the year the decline was perhaps responsible for the small bounce that we say in Beans today. Some regions were experienced soil moisture declines while some other key areas actually posted moisture improvement. Illinois and Iowa are among the areas that experienced soil moisture gains. Both November and September Beans finished the day up 7.50 cents. November Beans produced a watermark gain high of 16.75 cents intraday but sellers did not hesitate electing to sell into strength. More than half of the day’s gains were surrendered when the regular session closed.
Corn was quite today with both the September and December contract trading inside of a tight trading range. September was down 2 cents and December down 1.50 cents. September Wheat returned to form dropping 12.75 cents giving up the gains made over the last 2-3 trading days. It is going to need the hold the low that was made on the 20th to have a shot sustaining a short term technical low. The heat that was plaguing the Midwest is moving east according to the National Weather Service.
