One look at the broad markets this morning gave a fairly good idea at the driving force behind our grain trade today. The traders were booking profits on commodities in droves as the dollar looks to have put in at least an interim bottom. While we do expect to see additional inflows of capital into commodities to close out the month/quarter, what we’ve seen the past few trading sessions is a whole different dynamic. The distinction being that we’ve been seeing the hedge funds leaving commodities, not necessarily the index money.
The Midwest has been hit by its first heatwave of the summer, forecasters said on Monday, boosting crop development and speeding winter wheat harvest, which pressured grain futures prices. Farmers are still trying to wrap up soy planting in the southeastern Midwest due to all the rain. The wet weather has also delayed the start of soft red winter wheat harvest, and raised concerns about crop quality.
Crop progress report out this afternoon has IL corn at 51% good/excellent, beans at 52% good/excellent, while Iowa, Nebraska and Minnesota were all at or above 80% good/excellent for corn and soybeans were above 70%.
Chris Spurlock
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