July 28, 2014 | Grain Hedge Insights | Cody Bills | Views: 300

Soybeans Higher in the Overnight

Soybeans traded higher in the overnight on light news and concerns that if dryness persists in parts of the Midwest, soybeans setting pods late could be effected.

The grains are mixed this morning with corn trading 3 cents higher, wheat 3 ¾ cents lower and August soybeans 12 cents higher this morning. The August soybean contract is trading at $12.24 ½ and has first notice on Thursday, July 31. Currently, the spread between August and September Soybeans is 96 ½ cents, down from over $1.40 at the beginning of July.

Over the weekend rains were scattered, but there are still areas of dryness in the western parts of the Grain Belt. This morning, the 6 to 10 day forecast is showing a drier than normal trend throughout most of the grain belt, but 8 to 14 day forecast looks to bring in more precipitation in the eastern and southern parts of the Corn Belt. Dryness in some parts of the Midwest has been a concern, but the lack of heat stress has limited its damaging effects.

Europe’s wheat harvest has been interrupted again by more precipitation helping perpetuate the quality concerns for this year’s wheat crop. Currently there is a large gap of up to $40 a ton depending on the quality of the wheat. In Germany, the showers should delay harvest only temporarily as hot weather allows producers to get back into the field following the rain event.

Australia which is currently struggling with dryness looks to see another three months without much relief. The Bureau of Meteorology said Thursday that dry weather is likely to persist across eastern Australia for the next three months. There’s around 60% chance of below median rainfall in northern Queensland, Southern New South Wales and most of Victoria. If these forecasts were to actualize, we would see a drag on yield from the world’s third largest wheat exporter. 

More Articles

Weekly Cash Comments

April 17, 2015 | Grain Hedge Insights | Cody Bills

Grain basis levels continued to stagnate this week with both corn and beans each posting less than a 1-cent improvement on the week.

 

In corn, the biggest movement occurred at the Gulf where export bids were up 3 cents a bushel on nearby basis, but river terminals as a group posted only...

[Read More]

Wheat Prices under Pressure

April 17, 2015 | Grain Hedge Insights | Cody Bills

In the overnight session corn is down 3/4 of a penny, soybeans are up a cent and wheat is up 3 1/4 cents. The dollar is trading slightly higher this morning, now hovering at 97.640 while crude oil is trading down nearly a percent after news that OPEC’s production in March added to the...

[Read More]

Soybean Sales Beat Expectations

April 16, 2015 | Grain Hedge Insights | Cody Bills

In the overnight session corn and soybeans traded a relatively wide range but went into the morning pause mostly unchanged. Wheat increased 3 1/4 cents in the overnight and the U.S. dollar index continued its slide for the third straight day. Crude oil is also trading lower this morning off...

[Read More]