In the overnight session the grains have traded lower with December corn down 1 ¼ cents, November soybeans down ½ cents and December Chicago wheat down 1 ½ cents. Corn continues to struggle against the resistance level of around $3.58 which was last years low for the contract.
Crop conditions were reported within analyst expectations after the market closed yesterday. Corn declined by a percentage point to 61 percent good to excellent compared to expectations of holding steady. Soybean conditions were unchanged at 61 percent good to excellent. The U.S spring wheat is 89 percent harvested compared to a five year average of 78 percent by this week.
On Tuesday, Brazil’s Agroconsult reported their latest 2017-18 crop estimates. Brazil’s soy crop is estimated at 111.1 million metric tons which is 4 percent below last years record. Agroconsult estimated their first corn crop at 26.1 million metric tons which was 14 percent below 2016-17 levels.
The Stocks of Principal Field Crops Report was released this morning by Statistics Canada which showed Canadian grain stocks as of July 31st. According to the report wheat stocks were 6.9 million metric tons which was up 32.6 percent from last year. Durum wheat stocks were up 69.4 percent from last year at 1.9 million metric tons. Canola stocks however were 1.3 million metric tons which was a 35.5 percent decline from last year.
Hurricane Harvey’s impact on wheat export out of Texas continues to linger after flooded railroad tracks and closed ports stopped all movement of wheat last week. Hurricane Irma is now on track to hit Florida by the weekend and has been strengthening with winds up to 185 miles per hour.
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