Headlines:

  • Court ruling fuels soybean oil rally. Grains quieter
    For once, weather, and particularly Corn Belt weather, was not the only think on grain traders’ minds. The big performer in Chicago on Friday was soybean oil, which for December delivery soared nearly 4% at one point before easing back to close at 35.02 cents a pound, a gain of 2.2% on the day, and its best finish in nearly five months. The jump reflected a ruling by a US court that the US Environmental Protection Agency erred in seeking to cut biofuels mandates, a decision which was made – wrongly, the court said – based on consumer demand rather than supply.
  • Missile North Korea launched was an ICBM – Pentagon
    North Korea launched an intercontinental ballistic missile (ICBM) that flew for about 1,000 km (620 miles) and landed in Japan’s exclusive economic zone, the Pentagon said on Friday. Pentagon spokesman Captain Jeff Davis said the missile was launched from Mupyong-ni, an arms plant in northern North Korea, and landed about 90 nautical miles (167 km) from Japan’s island of Hokkaido. “We assess that this was an ICBM; this is a launch that had been expected,” Davis said. Davis said the launch did not pose a threat to North America and further analysis was underway. “Our commitment to the defense of our allies, including the Republic of Korea and Japan, in the face of these threats, remains ironclad. We remain prepared to defend ourselves and our allies from any attack or provocation,” Davis said.

 

Summary:

Wheat futures were strong through the middle of the trading day. The Wheat Quality Council tour of North Dakota pegged Wheat production and yields at their lowest levels since 2011. The dry and hot weather over the course of the summer has been a drag on yields/production for the region. Current indications suggest that the chances of rainfall are below normal for August. That is bad news for spring crops. At about noon eastern Wheat, Corn and Soybean futures reached their intraday highs. Wheat finished the say selling off much of its intraday gains. At the close it was only up 7 ticks on the September contract and 5 ticks on the December. Corn posted a small trading range on the day. It was up 4 ticks for the September and 6 ticks on the December. November Beans had another 5-cent gain. Concern over hot weather arriving while the crop is setting pods has been the catalyst behind the strength in Beans. According to the USDA, about 69% of the crop was bloomed as of Sunday while almost 30% is blooming.