Russia Will Not Set Export Limits for Grain, Wheat Tumbles
The Russian Ministry of Agriculture met with grain traders and exporters yesterday and shortly after announced that they see no need to enact export taxes or take any other measures to reduce exports out of Russia. Russian officials at the Ministry of Agriculture state that the domestic “grain market is stable” and due to a smaller crop, they do not anticipate much growth in exports for this year. Russia is the world’s largest exporter of wheat. Following this news, Chicago SRW fell over 15 cents, KC HRW down 16.75 cents, and Minneapolis HRS was down 13.75 cents.
Speculators See Net Shorts Grow for Soybeans, Corn; Remain Optimistic for Wheat
Managed money was selling corn for the week ending on Aug 28, increasing their net short position by 42,133 to 56,957 contracts. This is based on the sentiment that the USDA may be underestimating the size of the US corn crop. Money managers also increased their net shorts for soybeans by 13,593 to 53,642 contracts. This level is about 23,000 more short positions than this time last year. Speculators remain net long for wheat, but pulled back on their positions slightly. Chicago SRW net longs fell 9,632 to 51,180 contracts. KC HRW’s net long dropped 2,913 to 61,460 contracts and MN HRS net longs were reduced by 3,131 to 2,565 contracts.
Flash Floods May Affect Low Lying Areas Across Central Corn Belt
Flash flood warnings and watches are in effect from parts of central Kansas all the way to N Wisconsin. Areas near creeks or rivers may be threatened by heavy rains over the first half of this week. Central Kansas and SE Nebraska are expecting 1-3 inches of rain today, which will total around 5 inches since Sunday. Forecasts from the NWS also call for up to 6 inches of rain in areas of N Iowa, S Minnesota, and central and N Wisconsin. Wisconsin has been in and out of flood watch over the past week and these new rains may make matters worse.
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