Written Commentary
MORNING AG OUTLOOK
Grains are mixed. Soybeans and corn are unch with wheat slightly higher. US stocks are lower. US Dollar is lower. Crude is lower. Gold is higher.
SOYBEANS
Soybeans are unch. Funds continue to cover shorts. Talk of drier N Brazil weather offsets increase US hedge selling . Dalian soybean futures were higher. Dalian soyoil and palmoil futures were higher. Weekly US soybean export sales are est at 900-2,000 mt vs 1,748 last week. Soyoil is up to 44 cents. Overnight prices may have found resistance due to lower Crude. Soymeal is finding support from increase US export demand. BAGE est Argentina soybean crop at 52 mmt vs USDA 51 and 50.5 ly.
CORN
Corn futures are unch. Funds continue to cover shorts. US west Midwest weather should be favorable for harvest. Tropical storm could dump rain in Delta, SE and south east Midwest slowing harvest there. Dalian corn futures traded lower. Satellite imagery suggest record NE China corn yields, Area is 60 pct of total crop. Weekly US corn export sales are est at 600-1,300 mt vs 847 last week, Brazil 2 week forecast turned drier yesterday, BAGE est Argentina corn crop at 47 mmt vs 49.16 ky, Rosario GE est acres down 21 pct. Parana river water level lowest in 50 years.
WHEAT
Wheat are slightly higher. US Dollar is lower. BAGE raised wheat crop est to 18.6 mmt vs USDA 18. Rosario GE is near 20.4. EU crop is also est lower than previous est. Key is Russia export price which seems to be firming but Russia continues to offer lowest export price to buyers. US weekly export sales are est at 200-600 mt vs 246 last week. Dry US plains weather offers support to KC wheat. Trade looks for US HRW acres near last years while SRW acres could be up 2 pct. WZ is near upper end of range since July on fund short covering,
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