Friday, July 26, 2013

FC Mid-day Grain Market Commentary for 7/26/2013

Mid-Day Comments 07-26-13

Friday, July 26, 2013, 11:42 am
Submitted by: Dustin Weiner


It sure looks like the markets were ready to take a breather as we are experiencing a calm end to the week (about the only calm day we have had all week).  Dec corn on the board has so far been unable to break through yesterday’s low of 4.75 cz – which is a good thing for the bulls as they look for signs of a short term bottom.  The cash market on corn is still stunned after the 50c to $1 drop in basis yesterday.  So far it appears corn basis will stay where it is, at least for today.
 
The USDA did announce this morning the sale of 220k MT of new crop soybeans to China and 211k MT of new crop corn to unknown which is somewhat helping the market stabilize. 
 
August soybean meal – after being down the limit ($20) two days in a row is actually trading again, only down $18 right now.  Still a negative input on cash soybeans of course but it is nice to see it trade again.  Meal is currently around $90 off of Tuesday’s high.
 
Ethanol futures have lost 25 cents this week (a huge move), with most of it coming over the past two days.  This means that ethanol is now at its lowest level since January which could help explain some of the weakness in corn. 
 
The newest drought monitor came out, and the big change from last week is that Iowa jumped from 20% of the state being abnormally dry to 63% abnormally dry.  Note that this was as of Tuesday (before last night’s rain). 
 
http://www.fccoop.com/markets/commentary_detail.cfm?CommentaryID=1787
 

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