In the overnight session the grains traded lower with corn down 5 1/4 cents, soybeans down 8 3/4 cents and wheat down 5 1/4 cents. The U.S. dollar is trading .21 percent higher and crude oil is down nearly a dollar on news that China’s factory activity contracted the most in two years.
The weather forecast continues to look positive for corn and soybeans across the Midwest with cooler than normal conditions expected this week. Rains should be widespread this week covering the eastern grain belt this evening and moving west later this week. The market will be watching the latest crop progress report scheduled for release at 3 PM CST with expectations for mostly unchanged to slightly higher crop conditions.
The latest Planalytics corn yield forecast released on July 31st increased its yield forecast by 1.3 bushels per acre to 166.7 bushels per acre as ideal weather over the past couple weeks helped corn through a critical reproductive phase. Planalytics left soybean yield unchanged at 45.6 bushels per acre with august weather still unknown. August weather will be critical as soybeans continue its pod setting stage and so far weather is positive. Current USDA yield estimates are 46 bushels per acre for soybeans and 166.8 bushels per acre for corn.
This morning Ukraine announced it expects to increase grain exports to 36 million metric tons this marketing year from 34.9 million metric tons in the 14/15 marketing year. In Ukraine, the export pace in July increased 13 percent over last year to 2.5 million metric tons.
