17/8/22 Prices

17/8/22 Prices

Are US corn futures trading fundamentals at the moment, well, that’s questionable. The weekly crop progress report showed a significant decline in corn quality in Iowa last week. Iowa is a major producer and any adjustments there should have rung loud alarm bells. Instead, those caffeine fuelled day traders and algo punters appear to be […]

Are US corn futures trading fundamentals at the moment, well, that's questionable. The weekly crop progress report showed a significant decline in corn quality in Iowa last week. Iowa is a major producer and any adjustments there should have rung loud alarm bells. Instead, those caffeine fuelled day traders and algo punters appear to be happy trading the trend and news that some storms fell on eastern Nebraska and parts of Iowa. Is this rain too little too late, well maybe, next week’s USDA crop progress report may tell. According to producers and agronomists on twitter the results could be mixed. Between 10 points and 3" fell out of yesterday’s storms. Some producers in the far NE of Nebraska calling it a life saver for the corn crop. Some saying it will simply stop the crop from declining further. Those who saw less than 70 points are simply enjoying the sound of rain on the roof after such a dry spell. Outside markets continue to pressure the oilseed complex. Crude oil slipped 3%. The cooler outlook for the US crop also pressured prices. The weakness in Chicago beans, back 31c/bu in the January slot, spilt over into the Winnipeg canola market which was also seeing some downside pressure from a better weather outlook. Rainfall would normally not be hugely beneficial to Canadian canola this time of year, but the crop is late, and consensus was it could help some. The oil / oilseed weakness didn't miss the Paris rapeseed contract either, the Feb23 slot their falling AUD$10.50. Not as sharply lower as the Winnipeg contract but undoubtedly helping to set the trend here today. Cash values out of the PNW saw both Canadian and US spring and winter wheat values slip AUD$4.00 to AUD$5.00 lower at the port. White wheat out of the PNW was unchanged. An increase in Black Sea loading from Ukraine, mostly corn, continued to pressure markets there. Talk of another 30 boats on the way though.