MARKET COMMENTARY
PM Comments 9/8/2014
Monday, September 8, 2014, 3:09 PMSubmitted by: Joel Pudenz
Rain is falling here in Central Iowa as we stare at
another day or two of precip. and a two-week outlook of colder
temperatures. During the overnight trade, corn, soybeans, and wheat all
traded higher on fears of frost. All three commodities
eventually turned lower as the market realized temps won’t get cold
enough to damage/shrink physical crop size. Crop ratings were within
market expectations this week, holding steady from last week for both
corn and soybeans. Corn is rated at 74% G/E nationally
and soybeans are 72% G/E nationally. In like manner, Iowa corn was
steady vs. last week at 76% as were soybeans vs. last week at 73%. This
is likely a neutral/negative input as we roll into to harvest with
record production potential coming closer and closer
to realization every day.
It’s been a wild ride for old crop bean basis –
domestic supplies are extremely tight and bean crush margins remain
lucrative. Gulf and interior basis levels are easing up, indicating
basis may have already peaked. Additionally, some interior
end-users already shut down or have indicated shutting down to wait for
more beans to hit the market here in a few weeks.
Corn closed 7 cents lower
Soybeans closed 13 to 16 cents lower
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