COMMENTARY 7/3/17

The Spring wheat and the NW corn belt is now looking even drier than originally thought. The next two following weeks.  We still have a chance for scattered showers this week, but beyond that, the dry ridge may be getting set into place.

CORN

UP 7

Followed wheat higher as warm and dry temps and rains forecasted for the last four days disappointed.  Export Inspections today were above expectation at 43.1 vs expectations of 33-41 mill.  Japan was a significant home taking nearly 14 mill bu.  Mexico was announced to have bought another 4.5 mill bu, mostly new crop.  Some forecasters have a high pressure ridge forming over the W over the next 10 days. This gives even more credibility to when we look at the 30 day moisture graphic showing MOST of the Corn Belt in the Very Short rating.  A comparison of sub-soil moisture maps now in 2017 compared to 2012 is SPOOKILY similar.  Stop by and check out the graphs.  Today’s Crop Progress report will be out Wed due to the July 4th holiday.

 

BEANS

UP 22

Dry weather makes for higher prices since the weekend turned out drier than anticipated.  Temps are relatively cool (compared to normal).  Export Inspections were puny at 9.8 mill vs expectations of 7 -16 and 13 needed per week from here on out.  Again, Mexico purchased another 92k old crop and 28k new crop.  Today’s progress is below.

 

 

WHEAT

UP 25

Hot/dry conditions in the HRW areas are taking its toll on MN and KS boards with Chicago following along in the paths.  Today’s Inspections were light at 18.6 mill vs expectations of 17-24mill.  Some 70 K HRW was sold to Unknown for 17/18 delivery and 70 K soft white, also for 18/19.  The USDA will be out Wed with crop progress. The general idea is that the HRS crop conditions will slip at least another 2-3%.