Outside Markets May Weigh on Grains Today
A lower start is expected in all pits, 2-4 wheat, 3-4 corn and 20 beans. Crude oil is lower and the $ higher this am, a bearish combination for the grains.
The weekly crop ratings report yesterday after the close showed corn maturity way behind normal, as expected. Only 33% of the corn crop is mature vs 63% average. Beans dropping leaves, a sign of maturity, were only 44% vs 64% average. Corn harvesting reached just 5% vs 14% average. There was no national number for bean harvesting yesterday as midwestern bean harvesting has barely started. Winter wheat planting is 22% done vs 30% average.
The forecast remains favorable for late developing corn and beans with warm temps and little rain in the picture. There is no threat of freezing temps in the belt for the next week. Light, scattered rain fell in parts of the western corn belt yesterday while the east was dry. More scattered, light rain is forecast in the west today with dry weather tomorrow through Sunday. The east is expected to be dry today through Sunday. Warm temps are predicted across the belt during this time. The 6-10 day calls for warm temps in the west with below normal rain while the east could see below normal temps and above normal rain. The delta is forecast to remain warm and dry the rest of this week through the weekend, allowing bean harvesting to pick up.
Argentina's drought-stressed wheat belt could see some much needed rain Saturday and again early next week. Beneficial rain fell yesterday in New South Wales state in Australia. A light freeze hit wheat in western Australia yesterday but beneficial rain is forecast there later this week.
Crude oil and the $ gave a huge boost to the grains yesterday but today they are likely to weigh on grain prices. Traders will continue watching these outside markets for direction in the grain market. Treasury Secretary Paulson will testify today before a Congressional committee and depending on what he says the $ and crude oil will react, which could then impact the grains so keep an eye on Paulson's testimony today also. ---Vic Lespinasse
The weekly crop ratings report yesterday after the close showed corn maturity way behind normal, as expected. Only 33% of the corn crop is mature vs 63% average. Beans dropping leaves, a sign of maturity, were only 44% vs 64% average. Corn harvesting reached just 5% vs 14% average. There was no national number for bean harvesting yesterday as midwestern bean harvesting has barely started. Winter wheat planting is 22% done vs 30% average.
The forecast remains favorable for late developing corn and beans with warm temps and little rain in the picture. There is no threat of freezing temps in the belt for the next week. Light, scattered rain fell in parts of the western corn belt yesterday while the east was dry. More scattered, light rain is forecast in the west today with dry weather tomorrow through Sunday. The east is expected to be dry today through Sunday. Warm temps are predicted across the belt during this time. The 6-10 day calls for warm temps in the west with below normal rain while the east could see below normal temps and above normal rain. The delta is forecast to remain warm and dry the rest of this week through the weekend, allowing bean harvesting to pick up.
Argentina's drought-stressed wheat belt could see some much needed rain Saturday and again early next week. Beneficial rain fell yesterday in New South Wales state in Australia. A light freeze hit wheat in western Australia yesterday but beneficial rain is forecast there later this week.
Crude oil and the $ gave a huge boost to the grains yesterday but today they are likely to weigh on grain prices. Traders will continue watching these outside markets for direction in the grain market. Treasury Secretary Paulson will testify today before a Congressional committee and depending on what he says the $ and crude oil will react, which could then impact the grains so keep an eye on Paulson's testimony today also. ---Vic Lespinasse
posted by InsightPublishing at
8:17 AM
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