by Steve Freed,
Grains are lower. CZ is down 5 cents and near 3.75. Some feel CZ could trade below recent low near 3.63. WZ is down 3 cents and near 4.74. Same group could see wheat follow corn and test 4.40. SX is down 6 cents and near 8.73. Some feel SX could trade back below 8.60 and retest 8.20. US stocks are higher. Crude is higher. US Dollar is higher.
Good and needed rains fell across parts of SD, MN, IL, IN and OH over the weekend. Parts of IL got .50-2.00 inches. The U.S. Midwest weather forecast has close to average rainfall over the majority of the Midwest the next 10 days. The next 5 days rainfall looks to favor the southern region.
The 11 to 16 Day Outlook calls for below average temps and below average precip in all of the Midwest.
Trade also added some premium to prices on Friday in front of this week’s Annual Pro Farmer crop tour. The tour has been named the “Tour of Truth” due to farmer’s feelings that USDA August yield were too high for conditions. Some are even looking for weekly USDA crop ratings to drop 1 pct from last week.
Historically, the Pro Farmer corn yield has been below the USDA Sep yield 14 of the 18 years. The difference has varied. Same could be said about the soybean yield. Pro Farmer soybean yield has been below USDA Sep yield 14 of last 18 years.
Iowa’s Republican Senator Chuck Grassley said the Trump administration’s Environmental Protection Agency has “screwed” the U.S. ethanol industry and farmers by granting waivers to 31 small petroleum refineries, effectively exempting them from an obligation to use more ethanol in their products.
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