Early Market Talk August 31, 2021


Corn volume yesterday at 421K contracts yesterday and the largest daily trade volume in twelve sessions. With that, total corn open interest off near 18K contracts. Liquidation in front of first notice day for Sep deliveries impacting OI. CZ21 OI higher yesterday. Modest soybean trade vol yesterday at 166K contracts with OI off near5K contracts. Soybean OI lower in each of the previous six sessions.

No corn or soybean deliveries on FND. Soybean oil had 236 lots put out. Chi wheat deliveries heavy with 1,000 contracts delivered. KC had 122 put out. 

Nice rain rolling through western and southern Iowa this morning. I’ll join the chorus of southern Iowa and say, “Would have loved to have this three weeks ago”. 

Overnight markets firmer out of the chute. Started to slip around midnight. At 0545 CZ21 now trading off 2¢ at $5.40 3⁄4 and inside a 5 3⁄4¢ high to low range. SX21 trading just a 1⁄2¢ higher currently and inside a 10¢ high to low range. 

I look at a corn chart and see the potential for sub $5.00 corn. Quick look at a bean chart and can’t rule out trading under $12. Maybe a test of $11.00.

Dow futures near steady this morning at 35,357. Crude 60¢ lower at $68.61. US $ index showing modest weakness. 

Both corn and soybean G/E ratings were unchanged at 60 and 56% in yesterday afternoons report. Will take a quick look at week-to-week progression data later this morning and for the last time of the season. 

CZCH at 8¢ this morning. SXSF at 6 1⁄2¢. SXSN a season best 18 3⁄4¢ carry. 

Brazil planting conditions starting to get attention. Planting there gets started in late September. Current dry conditions have some (bulls looking for anything) suggesting plantings could fall below expectations. Plant in the dust mantra comes to mind with that................. 

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