In the overnight session the grains traded lower with corn down 8 ¾ cents, soybeans down 12 ¾ cents and wheat in Chicago down 10 ¼ cents. The U.S. dollar is trading a fraction of a percent higher and crude oil is unchanged on the day. This morning the Taiwan Flour miller’s Association issued a tender for 104,350 metric tons of wheat to be purchased from the United States.
Crop conditions will be released out at 3 PM CST today, with expectations of corn conditions to be unchanged at 69 percent rated good to excellent and soybean conditions to decline slightly from 62 percent rated good to excellent last week. Weather looks to clear up for the eastern grain belt for the next 10 days providing some relief from saturated fields which have hindered yield prospects. Temperatures have also moderated throughout the Midwest with highs in the 80’s throughout most of the Midwest today. Another heat event is expected later this week which is expected to be mainly located in Kansas and into the Delta.
New crop corn sales have been behind the average pace for this time of the year. As of last week cumulative outstanding export sales for soybeans delivered in 15/16 totaled to 6,851,276 metric tons, compared to a three year average of 12,034,663 metric tons. New crop corn sales are also behind the average pace with only 3,543,127 metric tons of new crop corn sold, which is only 55 percent of the four year average. The strong dollar and sharp rally in futures prices has many new crop grain buyers sitting on the side line for the time being.
Strategy Grains cut their EU forecast last Thursday after heat and dry weather damaged crop production prospects. Strategy Grains lowered their corn forecast to 66.7 million metric tons down .7 MMT from the June forecast.
