On Tuesday, global markets remained under pressure thanks to growing uncertainty fueled by North Korea’s ballistic missile test. Meanwhile, in the U.S., markets were still reacting to the impact of Hurricane Harvey along the Gulf Coast.
Here’s our daily recap from the Chicago Board of Trade on August 29, 2017.
Corn Prices Dip Once Again
Another day, another low for corn prices. The September corn futures contract dipped 0.5 cents to close at $3.33. The December contract dipped 0.25 cents to close a tick above $3.485.
Markets were reacting to the news that the USDA crop report failed to deliver any additional bearish news. The agency reported that 62% of the corn crop was rated good-to-excellent for the week ending August 27. The report also indicated that 8% of the crop was rated mature. That is off from the 10% average over the last five years.
What’s interesting about that the report is that Tennessee and Kentucky were the only two states that that were ahead of their maturity expectations.
Other progress indicated that 57% of the crop is now dented. That was up nearly 30% from the previous week.
Markets were also looking at updates from export reports. The USDA said this morning that about 7.79 million bushels were headed to Mexico in the upcoming calendar. If you were using the FarmLead grain unit converter, you’d know that this is about 226,000 metric tonnes.
In surprisingly bullish news, we’re getting word out of Ukraine that drought conditions could lead to a double-digit decline in overall corn yields. That comes at a time that we’re receiving increasing evidence of record or near-record production in South Africa, Brazil, and possibly Argentina.
Soybeans Reverse Course
The September soybean futures contract added 2.75 cents as markets continued to weigh updates from the USDA. The November contract added 2.75 cents to close the day at $9.365.
We were digging through the USDA report this morning to look for bullish news. However, the crop quality report indicated a 1% gain in good-to-excellent. Down in Decatur, Ill., Farm Futures said that there could be a downturn in acreage for the 2018 calendar.
The firm’s planting survey indicated a 4% decline. However, this survey is a neat little descent into game theory. So, it will be interesting to determine which farmers decide to slash output and – just as important – where…
Today, the USDA said that Mexico is on tap to receive 8.3 million bushels of new crop.
Wheat Continues Its Slide
In Chicago, the SRW wheat contract added 3.5 cents to close the day at $4.06. The December futures contract added 2.0 cents to close the day just below $4.32 per bushel.
Down in Kansas City, the September contract added 2.75 cents to close $6.4025. The December HRW contract added .5 cents to finish the day at $6.6475.
In Minneapolis, the spring wheat contract added 2.75 cents and closed at $6.4025. Markets were looking for additional clues into the quality of spring wheat, but the USDA only reported progress of the harvest. With 79% of the wheat harvest complete, many are surprised by the pace
After all, the five-year average for this time of year is 66%.