Closing Markets: Corn: -5.75.
Beans: -6.75. Wheat: -18.25.
TFG is offering a drying incentive at ALL LOCATIONS Tuesday 8th - Sunday 13th!
2 1/2 cents per pt of moisture up to 30%. Regular rate above.
Harvest hours will be used as needed!
Good evening!
Market Recap-
Ag futures were lower at mid-week, with pre-report profit taking on the part of the spec community being the main driving factor throughout the day. We mentioned it yesterday, but the trade is without a doubt in wait-and-see-mode this week for both the WASDE update on Friday but also on combine yield data that's expected to start becoming more prevalent in the days/weeks ahead.
Corn Summary-
Corn futures traded lower on Wednesday, with a mid-morning rally back close to unchanged quickly failing amid the desire to lessen positions ahead of Friday's update. We don't know that the USDA's current crop estimate is all that out of the ballpark, but it just feels like traders are waiting on/anticipating a smaller yield number to show up at some point before the year is all said and done. That said, what isn't likely to change soon is the record demand levels that have been seen over the last year, which still account for a lot of the tightness in today's balance sheet.
Soybean Summary-
The soy complex was mixed/mostly lower on Wednesday, with the beans lower and the products mixed on a bit of spread unwinding and limited fresh news specific to either of the three. The corn comments regarding wait-and-see trade for Friday's report are true also here, but there is also the looming Trump-Xi summit in another couple weeks that will exaggerate that circumstance even beyond Friday. The Chinese have, to this point, largely made good on their intent to take 25 MMTs of new crop US beans, but its simply difficult to asses what will result from this next round of high level negotiations.
Wheat Summary-
Wheat futures led to the downside on Wednesday, selling-off with the rest of the group on speculative profit taking ahead of Friday's update and as headlines regarding progress in the Black Sea continue to be rather back-and-forth. Talks of peace and a willingness to negotiate have been being replaced almost immediately with headlines of new military action, which has produced choppy price action, especially in the overnight hours when trade is thin.
Outside News Headlines-
Crude oil futures up $3.00+/bbl.
Weather Updates-
Thunderstorms worked across the Central part of the Corn Belt on Wednesday as high pressure is finally beginning to retrograde back west, allowing better moisture to impact the heart of the Midwest. Models have additional scattered precip across the region into the end of the week, with rains then expanding through the north again into the first part of next week.
Temperatures look to remain variable into next week, though seem to be cooling overall as low pressure in the northwest works east and squashes warmer air back to the south and west.
Week two precip anomaly maps trended wetter on Wednesday throughout much of the eastern US, with there now decent agreement on good moisture availability for most all of the country east of the Rockies. The northwest looks to go over drier during the period but has seen ample rainfall since the middle/back half of August.
Enjoy it!
Bailey Runyen
Grain Originator | Topflight Grain Coop.
101 N. Main St. | Cisco, IL 61830
Phone :: 217-669-2141
Email :: brunyen@tfgrain.com
