In the overnight session the market traded higher after hard selling across the board in the grain complex yesterday. Yesterday morning’s GFS weather model showed little change in temperature patterns throughout the US but showed slightly drier conditions are expected in Iowa, Illinois and Indiana with probability leaning toward slightly wetter conditions in Minnesota, Missouri and Wisconsin.
The Grain Crushings and Co Products report released yesterday showed that corn consumed for alcohol and other was 490 million bushels in June ‘17, down 4 percent from May but up 2 percent YOY. Corn used for fuel alcohol which is the largest line item in the report showed 437 million bushes were used in June down 3 percent from May but up 2 percent from June 2016.
It was announced yesterday that 154.1 million bushels of soybeans were crushed in June which was outside the range of estimates and well above the average analyst guess of 146.9 million bushels in a Reuters poll.
FCStone released their August crop survey results which showed corn at 162.8 bushels per acre compared to the July WASDE estimate of 170.7. Their crop survey pegged soybean yield at 47.7 bpa compared to 48 bpa in the latest WASDE report.
Yesterday’s selling pressure drove December Corn to $3.76 ¾ by the close, leaving the June 23rd low of $3.74 unbroken and still likely to provide support. November Soybeans fell sharply yesterday closing the day at $9.70 ½ which is the high side of the consolidation pattern that formed between April 17th and May 17th. In the short term the $9.70 level could provide support for soybeans but the most notable area in the November soybean chart landscape is the gap in price action between June 30th and July 3rd when prices jumped from $9.52 ½ to $9.63 ½. That gap area should provide some support if prices retrace further.
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