Thursday, July 26, 2012

Finally had rain move thru the state last night, amounts ranged from near zero to an inch in spots. The same front is moving East with the same mixed results. Overall the market looks at rainfall totals this morning as disappointing. Weekly export sales are out this morning and we had net corn sales cancellations for both this crop year and next (both likely China). Corn demand rationing is happening, mainly in the ethanol and export sectors. This current year’s carryout will be larger than last advertised, probably pushing towards 1.0Bln bushels. National corn yield is probably trading around 130bpa, although some private analysts are below that. Weekly soybean sales were for the most part as expected. Trade has certainly been volatile so far this week…charts look toppy and when the funds want to either buy or sell it can move in a hurry. Markets this morning are fairly quiet with corn slightly higher and soybeans slightly lower.

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