Skip to main content

On the Grains
Grains are mixed in overnight trade. As of 6am corn and beans are firm but wheat still on the soft side. Bullish news is still hard to come by, but after seven straight lower closes even the bears are running low on grit. The weather outlook is drier for the next seven days and that pretty much is exactly what the crop needs with many regions too wet. To put numbers on it, Monday’s Crop Progress report said topsoil moisture was in “surplus” for 18% of the country vs. 5% last year and 14% of the nation’s subsoil was in “surplus” vs. 3% last year.
 
Yet another Russian firm, SoveEcon, has cut its estimate of that country’s wheat production to 80.7 million tonnes vs. USDA’s current peg at 88 million and we’ve got other sources saying it may well be as low as 76 MMT. It still looks like India will resume wheat imports to rebuild stocks. Yet U.S. wheat prices remain overpriced internationally and harvest is upon us. Further, there are new reports that China will rebuild its stocks from domestic supplies and remain stingy on imports.
 
On the Grains
Grains are mixed in overnight trade. As of 6am corn and beans are firm but wheat still on the soft side. Bullish news is still hard to come by, but after seven straight lower closes even the bears are running low on grit. The weather outlook is drier for the next seven days and that pretty much is exactly what the crop needs with many regions too wet. To put numbers on it, Monday’s Crop Progress report said topsoil moisture was in “surplus” for 18% of the country vs. 5% last year and 14% of the nation’s subsoil was in “surplus” vs. 3% last year.
 
Yet another Russian firm, SoveEcon, has cut its estimate of that country’s wheat production to 80.7 million tonnes vs. USDA’s current peg at 88 million and we’ve got other sources saying it may well be as low as 76 MMT. It still looks like India will resume wheat imports to rebuild stocks. Yet U.S. wheat prices remain overpriced internationally and harvest is upon us. Further, there are new reports that China will rebuild its stocks from domestic supplies and remain stingy on imports.

This content is for members only.
Log In Register

Sign Up For The Commstock Report

Sign Up Now to Improve Your Marketing and Protect Your Profits

Subscribe

Already a Subscriber?
Sign In