July 8 Morning Ag Commentary

by Steve Freed,

Grains are higher. Some feel funds could add a little weather premium back with this weeks drier than normal US Midwest 2 weather outlook. There could also be some evening up in front of this weeks USDA supply and demand report. SX is up 4 cents and near 8.99. CZ is up 5 cents and near 4.48. WZ is up 3 cents and near 5.29. US Dollar is slightly higher.

Most look for USDA to show a 1-2 pct improvement in the US corn and soybean crop and US winter wheat harvest increasing to near 50 pct done.

The U.S. Midwest weather forecast has below average precip and average to above average temps over the next 10 days. The 11 to 16 Day Outlook now has ridging producing limited rains and above average temps for the majority of the Plains and Midwest.

For the week ended June 27th, U.S. All Wheat sales are running 21% ahead of a year ago, shipments up 33% with the USDA forecasting a 5% decline on the year.  U.S. Corn sales are running 15% behind a year ago, shipments 5% behind with the USDA forecasting a 10% decline on the year. U.S. Soybean sales are running 15% behind a year ago, shipments 23% behind with the USDA forecasting a 20% decline on the year.

There is no new news about US and China trade talks. Some feel pre conditions by the Chinese before the talks could reduce the chance for a deal. China talk that they might buy US corn, soybean and pork before the talks resume helped prices last week. Some feel their number one need is pork.

USDA supply and demand report is expected to show higher US corn acres and carryout, lower US soybean acres and carryout and still record World wheat supplies.

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2019-07-08T12:35:58+00:00 July 8th, 2019|