Grains in Chicago closed on a week note today on follow through selling. With weather forecasts being mostly benign. Crude oil extremely weak today down $2.79/barrel.
Corn caught in a downdraft of fund liquidation did score a new daily low today. Trade contemplating the effect of a possible yield as high as 160.acre. Most traders are not looking for much of any support until the 3.00 level basis December Futures. Estimates for Fridays USDA report are carryout at 1.567 billion bushels up sharply from June USDA at 1.09 billion bushels.
Soybeans caught in futures and basis depreciation resulting in double hits to cash as cash soybeans have fallen dramatically. This started with soybean meal basis depreciation at the end of last week. The market is getting tired. Estimates for USDA carryout on new crop are at 229 million bushels vs. 210 million in June USDA report.
Jeff Neisler
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