7/19/2019 7:50am EPC Contracts
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Computer selling has become the main driver in the grain sector with the light volume. The door for the least path of resistance is lower. Much of the Midwest received needed rains to sustain the hot conditions for the next few days but we continue the have nots and haves. The market is awaiting the USDA numbers in August and will keep a close eye on continued weather forecast.
Hot / dry pattern expected to build in the west central and southwestern Midwest over the next two days increasing stress on corn and soybeans, A cool front expected to push across the region Sunday and Monday dropping temperatures considerably for next week. The front will also touch off a few showers in central and southern areas, providing some temporary relief. A dry pattern Tuesday through much of next week expected to fallow.
Crop ratings Monday expected to show some improvement.
In other news French corn ratings fell 4% to 74% G/E this week but are still above last year's 71% (which had been hit with drought). Ukraine has so far in the month of July harvested 1.19 mmt of corn. Ukraine is expected to harvest 70 mmt of grain/wheat this year, about equal to last year. Look for consolidation today with funds unlikely to press it heading into the weekend on risk of weather maps flipping.
To put things in perspective the USDA’s most recent crop progress report showed Illinois leads the nation with more than 4.2 million corn and soybean acres in unfavorable condition, followed by Indiana at nearly 2.5 million, Iowa at nearly 2 million, Missouri and Ohio at more than 1.9 million each, and Minnesota at more than 1.4 million.
