Good afternoon bloggers! Today's heat index of 93 degrees tells me it's summer. Not only was the temperature a high for the area, the markets also finished up on the day. Corn, beans, and wheat were all up. Corn was up 6-9 cents. Beans were up 2-7 cents. Wheat was up 2-10 cents.
Nearby corn +9 cents @ $3.84
Fall corn +9 cents @ $3.96
Nearby beans +2 @ $9.97
Fall beans up +7 @ $9.62
Wheat +10 @ $5.59
Fund buying, weak US dollar, and lack of producer movement supported the market today. Technical buying was 'egged on' by a weak US dollar for most of the trading session. The market saw a nice rally last week, but not enough to shake producer bushels loose. It appears that there is still quite a bit of grain in producers' hands and they are waiting to see how far the rally can take them. There was also some talk this morning of China showing interest purchasing more US corn. Last year, China had a difficult time with crops. This contributed to over 1 million tons of corn from the US to China which was the largest in 15 years.
I think another reason for corn, beans, and wheat to find the green today was based on fears of weather. Europe, Ukraine, and regions of Russia are going through a tough time right with hot and dry weather. Forecasts for European wheat is down, Russia is going through a drought, and Canada is receiving too much rain. Though the Midwest has received a lot of rain in pockets across the region, the weather outlook is looking good for crops in the coming weeks. Rain is expected this evening and tomorrow. The weekend is looking clear and we shouldn't see rain until the middle of next week.
The Gulf is bidding +40 to +44 cents for US #2 corn. US #1 soybeans are getting bought at +92 to +98.
Stay classy Illinois,
Nathaniel Dubravec
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