October 23, 2018
Improving Iowa's Water Quality
July 24, 2018

 Markets giving up some ground this morning with CZ18 off $0.04 ½ and SX18
down $0.05 ¼. Both on modest vol of near 12 and 10K contracts respectively. KC
wheat also in the red down $0.04 ½.
 
Dow futures up 124 pts at 25,164 in early trade. Crude 32 pts higher at $68.21.
US $ Index lower this morning.
 
Yesterday was day 6 of a higher close on the CZ contract. SX streak ended at 5
days with lower close.
 
Corn G/E rating unchanged on the week at 72% with trade expecting a 1 – 2
point drop. Compares to 62% a year ago and the five year ave of 69%. A year
ago the poor / V Poor rating was 12% and this year at only 8%. Soybean rating
up 1% at 69% G/E also a mild surprise. Nebraska is 87% G/E and have to
wonder if that is not a record? I’ll do some digging.
 
Funds down for buying 6K corn yesterday reducing their net short to 138K
contracts. Funds sold 3K soybeans and estimated holding a net short of 67K
contracts.
 
Yesterday made note of tendency for markets to technically revisit breakout
levels and newly established trend lines shortly after a reversal. Good start
toward that end overnight?
 
US Gulf corn remains least cost source to the world. Corn demand growing and
underpinning price. Longer term outlook positive from these levels.
 
Source indicating that 50% of the Chinese reserve corn that has been auctioned
off since the first of the year is still in storage?
 
Next 7 days do not hold much rain from nearly the entire belt. No real heat as
well mitigating lack of rain?
 
Market set to test conviction of technical support………………..
 
 


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