Grains continued to sell-off overnight with soybeans giving up 20 cents while corn and wheat were down 7 cents.
On Monday, USDA’s crop progress report continued to show a corn crop that was in really good shape. For the 2nd week in a row analysts were wrong in in expecting crop conditions to slide for corn as this week’s reading continued to show 75% of the crop in good-to-excellent condition. However, soybeans on the other hand did slip more than expected to 70% from 72% last week.
Consultancy Strategie Grains will next week cut by 2 million tonnes its monthly estimate for France's upcoming soft wheat harvest due to lower yield projections, the consultancy said on Wednesday. In its grain report for the European Union due on July 14, Strategie Grains will put the 2016 French soft wheat crop at 36.5 million tonnes, down from 38.5 million estimated in June, as it cut the average yield to 6.98 tonnes per hectare from 7.38 t/ha last month, it said.
The latest weather models show additional showers and thunderstorms for many important summer grain and oilseed production areas in the United states by this time next week. Precipitation will be most significant in northern Iowa, the eastern Dakotas,
Minnesota and portions of Wisconsin and Michigan. The second week outlook perpetuates frequent changes in weather across the United States as a result of a strong jet stream. The European and GFS model runs are both agreeing through day 10 that weather patterns will be mostly good with alternating periods of rain and dryness.
Fear of instability in the European Union and of decades of global stagnation sent stock markets sharply lower on Wednesday as Britain's pound sank below $1.30 for the first time in more than three decades. After a steadier few days as investors digested the shock of Britain's decision to leave the European Union, the implications of another round of financial losses, interest rate cuts and central bank money-printing to prop up growth have begun to set in. Gold hit its highest in more than two years on Wednesday as a drop in stock markets and a slide in some bond yields to record lows after Britain's vote to leave the European Union prompted investors to seek out bullion as a haven from risk.
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