July 17 Morning Ag Commentary

by Michael Niemiec,

Wheat prices overnight are down roughly 1 cent in the SRW Wheat, down 3 in HRW, and down 3 for HRS; Corn is up 1 cent; Soybeans up 3; Soymeal up $1.00, and; Soyoil up 15 points.

Chinese Ag futures (September) settled down 26 yuan in Soybeans, up 1 in Corn, unchanged in Soymeal, down 18 in Soyoil, and down 24 in Palm Oil.

The recent GFS model run for the U.S. Midwest was notably wetter in central and northeastern parts of the Corn Belt through next week. Below average temperatures are likely due to the ridge of high pressure being positioned in the western states, which will allow cold fronts to move through the Corn Belt. The ridge of high pressure will be positioned over the western states through the end of the month. This was similar to what the midday GFS model suggested yesterday.

Preliminary Open Interest saw SRW Wheat futures up roughly 4,600 contracts; HRW Wheat up 1,400; Corn up 2,000; Soybeans down 8,100 contracts; Soymeal up 3,800 lots, and; Soyoil up 2,000.

We continue to cancel Corn and Soybean registrations (now 1,587 corn registered, 67 soybeans)

In tender activity—Egypt seeks optional-origin wheat

WTO opens way for Chinese sanctions against U.S. tariffs in Obama-era dispute; the United States did not fully comply with a World Trade Organization ruling and could face Chinese sanctions if it does not remove certain tariffs that break WTO rules, the WTO’s appeals judges said

Wire story reports Chicago corn futures have traded at multiyear highs since late May on a record late-planted U.S. crop; speculators have built a sizable net long position and farmers remain hopeful of even higher prices; but what if corn futures have already hit their highs?

Pork prices will probably continue strengthening over the rest of the year, while fruit price gains will likely moderate, a Chinese official said; supply-and-demand dynamics will further tighten in the second half due to an African swine-fever outbreak, creating more upward pressure for pork prices.

Wire story reports Brazil is strengthening its lead against the U.S. after trading giants spent millions of dollars on building new terminals and developing routes to ports in the north through the Amazon region.

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2019-07-17T12:44:56+00:00 July 17th, 2019|