Corn: September corn futures have declined by $0.18 since the market’s open on Monday morning. During today’s trade, a new contract low was established for the September futures contract. Weather continues to be the dominating factor that is pushing corn prices lower. Extended forecasts are showing milder temperatures for the Midwest for the next 30 days with some rain forecasted for most of the Midwest in August. Also, Iowa and Illinois reportedly have adequate soil moisture, which further reduces the chance of a smaller corn crop. The USDA continues to rate 76% of the corn crop as good-to-excellent with 56% of the crop silking. New crop basis for September delivery weakened a bit from last week as it declined by two cents.
Soybeans: November soybean futures have declined by $0.35 since the market’s open on Monday morning. Weather forecasts continue to remain favorable. However, weather forecasts beyond the 6-10 day forecast can change drastically between now and then. The key to the size of the soybean crop will be what the weather is like during the month of August. The USDA is currently rating 71% of the crop as good-to-excellent with only 18% of the crop setting pods. New crop basis for soybeans weakened by three cents from last week’s levels.
Wheat: Winter wheat harvest is mostly over for the U.S. and spring wheat harvest is to start very soon. The market’s focus has shifted to the European wheat market due to a lack of news in the U.S. wheat market. France is Europe’s largest wheat producer and they are reporting poor yields for their wheat crop. In exports, wheat sales were on par with analyst’s expectations for the week.
Cotton: December cotton closed at 72.77. The heat and stress that has impacted the crop in West Texas is raising concerns of the size of the U.S. cotton crop. There also concerns about the size of the India cotton crop due to weather events there. Cotton futures have rallied recently due to the increased buying of domestic cotton in China out of the Chinese reserve. The buying of cotton has fueled cotton futures to the highest levels that we have seen so far this year. Most analysts do not think that the upward price movement will continue. In fact, December cotton futures have traded lower so far this week. The fact that polyester is still so much cheaper than cotton does keep a lid on cotton futures. Cotton demand has suffered over the past several years due to the mere fact that polyester is so much cheaper when compared to cotton. Cotton equities (loan options) continue to be $0.15.
West Grain Elevator Bids: Grain Newsletter 7-21-2016
