PM Comments 07/23/13
Tuesday, July 23, 2013, 3:25 pmSubmitted by: Dustin Weiner
Good afternoon!
It was a wild day today, especially in soybeans. Nearby cash beans (sq13) were down just shy of 58 cents while new crop (sx13) was down 28 cents. This was all sparked by a rumor that China may release 3 million MT’s of their gov’t owned soybean reserves into its domestic market. This would lower China’s import needs for soybeans and soybean meal (although they will most likely one day replenish those reserves). This triggered massive selling in the futures markets and nearby soybean basis crashed as well.
Corn and beans also found weakness from the rain that fell overnight in Iowa and the nice rains that hit Nebraska this morning. The southern corn belt also received good precip (see 24 hour rainfall map below). This all weighed heavy on new crop prices. Extended weather forecasts look good for the growing US crop as temps the next two weeks look to be normal to below normal with normal rainfall projected. The grain “longs” in the market may be getting nervous as the window to hurt the US corn crop is slowly closing…
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