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Weather, outsides support grains and oilseeds
Soybeans were higher on speculative and commercial buying. Beans continue to keep an eye on the weather – while there has been rain recently in some areas and there’s at least a little bit more in the forecast, the drought has not been broken. Outside markets were also supportive with crude oil back above $90, the Dow closing over 13,000, and the dollar lower. In any event, the near term supply remains tight and demand continues to look strong. Informa Economics, via Dow Jones Newswires, lowered their soybean estimate to 2.890 billion bushels with an average yield of 38.5 bushels per acre. Doane Advisory, also via Dow Jones, has Iowa’s yield at 39 bushels per acre following a state crop tour. The International Grains Council has U.S. bean production at a five-year low of 79 million tons. Soybean meal and oil followed beans higher.
Corn was higher on fund and technical buying, along with spillover from beans. Forecasts are showing more generally hot and dry conditions across most of the U.S. Midwest in the near term. Some damage has been done and part of the crop has been lost, now, we just have to figure out how much. Informa Economics, via Dow Jones Newswires, sees this year’s corn crop at 11.475 billion bushels with an average yield of 134 bushels per acre, and following a state-wide crop tour, Doane Advisory, also via Dow Jones, has Iowa’s corn yield at 117 bushels per acre. Ethanol futures were higher.
The wheat complex was higher on commercial and technical buying, along with spillover from corn, beans and the dollar. U.S. crop weather isn’t much of a factor, so wheat’s watching world conditions. There’s been another round of lower estimates for Russia and the United Kingdom’s crop has developed slowly. Russia’s Weather Center, via Dow Jones Newswires, pegs the total grain crop at 77 million to 80 million tons and the International Grains Council puts wheat production at 45 million tons. The United Kingdom’s Home Grown Cereals Authority says record wheat yields are unlikely following heavy rainfall earlier in the growing season. European wheat was higher on the U.S. gains.
2012-07-27 14:27:41
Source: http://brownfieldagnews.com/2012/07/27/weather-outsides-support-grains-and-oilseeds/
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