Monday, July 22, 2013

FC Morning Grain Market Commentar for 7/22/2013

AM Comments 07/22/13

Monday, July 22, 2013, 7:39 am
Submitted by: Dustin Weiner


Good morning!
 
Our markets were mixed last night with soybeans higher and corn a lower.  The weather should be viewed as a friendly input this morning.  Rains over the weekend were disappointing, with Iowa being the leader on disappointment.  Almost 1/3 of the Corn Belt can be considered dry right now and wanting a rain.  The main troublesome dry areas are scattered across Iowa, NW Illinois and a few patches in Missouri. 
 
If you are wondering why corn isn’t higher on this weather news – you just need to look at the world markets.  For example, Japan bought corn over the weekend for Oct/Nov/Dec from Ukraine and Brazil.  Not from the US.  Why?  Because our new crop corn is too high priced, around $0.50 to $0.75 a bushel more expensive than other countries.  We may not have a bin busting crop across the whole U.S. but it isn’t a disaster either.  We did a great job last year of pricing ourselves out of the world markets (high prices) because we didn’t have the corn to sell -- but we will soon need to be competitive again in the world markets and today we are just too high priced on new crop corn. 
 
Opening calls
Corn 4 to 6 cents lower
Soybeans 5 to 15 cents higher
 
5-Day Precip Map:

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