Lower Start Anticipated Ahead of Tomorrow's Crop Report
A lower start is indicated this am, down roughly 7-10 wheat, 2-3 corn and 1-3 beans. The $ is slightly higher while crude oil is slightly lower, a little negative for the grains.
Japan bought 107,000 tonnes of US wheat at their weekly tender.
According to news reports this am, the CFTC report on the unprecedented run up of prices in the energy market does not blame speculators, saying it was due to a major increase in demand from developing countries, especially China and India. The head of the CFTC will testify to this effect before the House Agriculture committee today. The CFTC said the same thing in July but, it being an election year, lawmakers are looking for a scapegoat and speculators are always an easy target. Hopefully, they will listen to the CFTC this time and end their witch hunt.
More analysts are cutting their Australian wheat crop estimate, the latest today being Rabobank and Pro Farmer, now at 20.9 million tonnes and 22.7 million, respectively. Previously, they were 22 million and 24.5 million, respectively. Rain is badly needed in western Australia, the largest wheat growing area in the country with New South Wales the second largest producer. The forecast calls for beneficial rain in New South Wales over coming days but only very light rain elsewhere for the next 7 days, including western Australia.
Argentina's dry wheat belt will stay that way with no rain forecast until next Thursday. The remnants of Hurricane Ike could drop heavy rain in the delta starting about Sunday, slowing harvesting of beans there.
There is still no freeze threat in the US midwest the next 10 days. Scattered rain fell in the western half of the belt yesterday. The forecast calls for up to 1.5" of rain in the west between today and Saturday with rain in the east Fri-Sun, up to 1". The 6-10 day calls for warmer and drier than usual conditions for the belt.
Weekly export sales were good for wheat, 457,000 tonnes, and beans, 460,000 tonnes. Meal was about as expected, a total of 83,000 tonnes between the old and new crop years. Corn sales were slow, just 376,000 tonnes and oil sales were poor, just 400 tonnes between the old and new crop years. A total of 2.578 million tonnes of corn and 888,000 tonnes of bean sales were carried over from the old crop year, ended Aug 31, to the new crop year, which started Sep 1.
Whatever happens today, it will likely be forgotten when the closing bell rings as attention will be focused on tomorrow morning's USDA Sep crop report. ---Vic Lespinasse
Japan bought 107,000 tonnes of US wheat at their weekly tender.
According to news reports this am, the CFTC report on the unprecedented run up of prices in the energy market does not blame speculators, saying it was due to a major increase in demand from developing countries, especially China and India. The head of the CFTC will testify to this effect before the House Agriculture committee today. The CFTC said the same thing in July but, it being an election year, lawmakers are looking for a scapegoat and speculators are always an easy target. Hopefully, they will listen to the CFTC this time and end their witch hunt.
More analysts are cutting their Australian wheat crop estimate, the latest today being Rabobank and Pro Farmer, now at 20.9 million tonnes and 22.7 million, respectively. Previously, they were 22 million and 24.5 million, respectively. Rain is badly needed in western Australia, the largest wheat growing area in the country with New South Wales the second largest producer. The forecast calls for beneficial rain in New South Wales over coming days but only very light rain elsewhere for the next 7 days, including western Australia.
Argentina's dry wheat belt will stay that way with no rain forecast until next Thursday. The remnants of Hurricane Ike could drop heavy rain in the delta starting about Sunday, slowing harvesting of beans there.
There is still no freeze threat in the US midwest the next 10 days. Scattered rain fell in the western half of the belt yesterday. The forecast calls for up to 1.5" of rain in the west between today and Saturday with rain in the east Fri-Sun, up to 1". The 6-10 day calls for warmer and drier than usual conditions for the belt.
Weekly export sales were good for wheat, 457,000 tonnes, and beans, 460,000 tonnes. Meal was about as expected, a total of 83,000 tonnes between the old and new crop years. Corn sales were slow, just 376,000 tonnes and oil sales were poor, just 400 tonnes between the old and new crop years. A total of 2.578 million tonnes of corn and 888,000 tonnes of bean sales were carried over from the old crop year, ended Aug 31, to the new crop year, which started Sep 1.
Whatever happens today, it will likely be forgotten when the closing bell rings as attention will be focused on tomorrow morning's USDA Sep crop report. ---Vic Lespinasse
posted by InsightPublishing at
8:37 AM
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