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Morning Outlook

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Overnight Highlights

  • Overnight grain markets: Corn – ¼,  Soybeans -2 ½, Wheat -1 ¼, Crude -.15, Gold +1.40, Dollar +.07, Dow futures -19.
  • Australia’s wheat crop continues to get downgraded due to drought, seen to be off by more than 40% from last year’s record production of 35.56 MMT.
  • Chinese officials expounded that although they intend to increase ethanol production domestically, this will not lead to a large increase in imports in the near-term, as they have large government stockpiles to work through. It is estimated that industrial consumption could increase by as much as 45 MMT on a yearly basis.
  • The Hogs & Pigs report yesterday did not do much to sway opinions as All Hogs & Pigs, Kept for Breeding and Kept for Market were at expectations. The hog herd as of September 1st, is the largest for the quarter on record since the government began tracking in 1988.
  • Thursday funds sold 4,000 corn, 4,000 soybeans, 4,000 wheat, 2,000 meal, 6,000 oil.
  • USDA Grain Stocks & Small Grain Report at 11am CDT. Analysts average estimates: soybean stocks .338 bbu vs. .963 bbu in June, wheat stocks 2.20 bbu vs. 1.18 bbu in June, corn stocks 2.35 bbu vs. 5.22 bbu in June.

Commodity Weather Group Forecast

 

All opinions expressed in this commentary are solely those of Water Street Advisory. This data and these comments are provided for information purposes only and are not intended to be used for specific trading strategies. Although all information is believed to be reliable, we cannot guarantee its accuracy or completeness. There is significant risk of loss involved in commodity futures and options trading and may not be suitable for all investors.

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