August 7, 2015

Justin Huebner, Grain Division Manager Grain Commentary

Corn

CBOT Prices Two Rivers Cash Bid Prices
Sep ‘15 372’6 +3’0 Aug ‘15 350’0 +3’0
Dec ‘15 383’6 +3’2 FH Sep ‘15 350’0 +3’0
Mar ‘16 394’6 +3’2      
May ‘16 401’2 +3’2 NC ‘15 339’0 +3’0

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Aug ‘15 1009’0 +23’4 Aug ‘15 984’0 +20’0
Sep ‘15 975’4 +19’4      
Nov ‘15 963’2 +20’0      
Jan ‘16 968’0 +20’0 NC ‘15 893’0 +20’0
  • Corn and beans finished higher today as soybeans caught a bid after China bought 132k tons of beans
  • Buying triggered the technical traders to buy as well with bullish developments on the charts
  • We likely saw short covering ahead of next Wednesday’s USDA supply and demand report
  • Average yield estimates for Wednesday is 164.5 bu/ac and 44.7 bu/ac for corn and beans respectively
  • In July those were 166.8 bu/ac and 46.0 bu/ac
  • Weather forecasts have turned a bit cooler and a bit wetter, so not quite as threatening as before
  • Commitment of Traders report showed the managed funds reducing corn longs by 79,000 contracts
  • They reduced their bean long positions by 11,400 contracts
  • The market looks to want to be in the middle of the July’s trading range heading into Wednesday
  • Overall, it was another quiet session. But next week looks to be more volatile
August 7, 2015