Grains started the week in positive territory as weather forecasts show more heat and dryness for the 2nd half of July. In outside markets, equities continue to move higher following Friday’s sharp advances while crude oil is modestly lower.
Weekend rains were about as expected with the northern plains getting rains that missed much of the Dakotas and left Minn with a good drink. Rains across the south were less general and scattered.The GFS model has been predicting heat for the last half of July—more extreme than other models with the ridge of heat moving east over the corn belt. NOAA does not have much above temps but it is hot enough that night time temps do not cool off enough to allow the corn plant to rest and regain strength.
Export business was active to start the week. A South Korea feed mill purchased 25,000 MT of US wheat while Jordan and Algeria were tendering for 100,000 and 50,000 MT of wheat overnight. South Korea feed buyers were also active late last week on deals to secure more corn.
On Friday, industry group Baker Hughes Inc. reported that the number rigs looking for oil in the U.S. rose by 10, the fifth increase in the past six weeks, bringing the total rig count to 351. After peaking at 1,609 in October 2014, low oil prices put a downward pressure and the rig count fell sharply.
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