Turmoil in Financial Markets May Hit Grains Today
A lower to sharply lower start is indicated this am, roughly 5-10 down in wheat, 10-15 lower in corn and 30-35 off in beans. The turmoil in the financial markets could have a major impact on the grains today so keep a close watch on them. Crude oil is sharply lower, below $100 a barrel for the first time in months, while the $ is sharply higher, a bearish combination for the grains. Malaysian palm oil fell 140 ringgit today, which is bearish for our bean oil market.
Heavy rain fell in parts of Missouri and Illinois over the weekend from the remnants of Hurricane Ike, flooding some areas with up to 7" of rain. Lesser amounts were seen elsewhere in the midwest while up to 1.5" fell in parts of the delta and in the eastern half of the southwest winter wheat belt. This rain was welcome in the southwest as fall winter wheat planting time is approaching. The good news is that mostly dry weather will be the rule this week in the midwest and delta, allowing fields to dry out and harvesting to proceed. The 6-10 day forecast for the midwest doesn't foresee any freezing temps, in fact above normal temps are forecast, which should allow corn and beans to continue developing.
Indian oilseed areas benefited from weekend rains which ended a dry spell in some areas there. Rain was scattered in the Australian wheat belts over the weekend, especially the dry western half of the belt, with up to 1". More is likely this week in the west with mostly dry weather in the east. The rain in the west was badly needed and very beneficial for the wheat crops there. Significant rain is now forecast in the very dry Argentine wheat belt later this week.
The National Oilseed Processors Assoc. August crush was around 12 million bushels below trade ideas, just 121.7 million bushels. Oil stocks were roughly 100 million lbs less than expected as a result of this much lower crushing rate, only 2.152 billion lbs.
Keep an eye on the outside markets today, especially the financial markets, as they could heavily influence our grain markets. ---Vic Lespinasse
Heavy rain fell in parts of Missouri and Illinois over the weekend from the remnants of Hurricane Ike, flooding some areas with up to 7" of rain. Lesser amounts were seen elsewhere in the midwest while up to 1.5" fell in parts of the delta and in the eastern half of the southwest winter wheat belt. This rain was welcome in the southwest as fall winter wheat planting time is approaching. The good news is that mostly dry weather will be the rule this week in the midwest and delta, allowing fields to dry out and harvesting to proceed. The 6-10 day forecast for the midwest doesn't foresee any freezing temps, in fact above normal temps are forecast, which should allow corn and beans to continue developing.
Indian oilseed areas benefited from weekend rains which ended a dry spell in some areas there. Rain was scattered in the Australian wheat belts over the weekend, especially the dry western half of the belt, with up to 1". More is likely this week in the west with mostly dry weather in the east. The rain in the west was badly needed and very beneficial for the wheat crops there. Significant rain is now forecast in the very dry Argentine wheat belt later this week.
The National Oilseed Processors Assoc. August crush was around 12 million bushels below trade ideas, just 121.7 million bushels. Oil stocks were roughly 100 million lbs less than expected as a result of this much lower crushing rate, only 2.152 billion lbs.
Keep an eye on the outside markets today, especially the financial markets, as they could heavily influence our grain markets. ---Vic Lespinasse
posted by InsightPublishing at
9:03 AM
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