STATELINE COOPERATIVE’S AFTERNOON COMMENTS AUGUST 15th

Corn North Burt: down 13 @ $ 7.04

The corn market traded lower on cooling temperatures across much of the US Midwest this week with chances for rain events around and about. Prices drew additional pressure from weakness in crude oil and a stronger US$.

• Closes: September down 13  cents at $6.26 ¾, December down 14 cents at $6.28 ¼, March down 13 ¼ cents at $6.35 ¾, July down 12 cents at $6.37. Red Dec closed down 3 ¼ cents at $5.96 ¼.
• CIF premiums were mostly unchanged.
• Weekly export inspections were reported at 538 tmt, in-line with what the trade was looking for (475-800 tmt).
• Weekly crop progress/conditions report has the corn crop rated at XXX compared to trade estimate of 56% G/E (55-57) and last week at 58% G/E.
• Spreads: U/Z 1 ¼ carry (¾ carry to 3 cents carry), Z/H 7 ¼ carry. 

 Soybean: down 42 $14.25

The soy complex tumbled after the report of China cutting interest rates because of disappointing economic data (zero COVID tolerance) and improving weather conditions for the US Midwest during the LH August. Prices drew additional pressure from last Friday’s USDA report (increasing yield, production and ending stocks).

• Closes:  November down 42 cents at $14.12 ¼, January down 41 ¼ cents at $14.19, March down 39 cents at $14.20, July down 34 ¾ cents at $14.20 ¼. Red Nov closed down 22 ½ cents at $13.43. the products were weaker with meal down 12-13 bucks and soyoil down 60-100 points.
• CIF premiums were mostly unchanged.
• Weekly export inspections were reported at 745 tmt, near the top end of the trade estimates (300-850 tmt).
• NOPA soybean crush report for July: 170.220 million bushels crushed, compared to the average trade estimate of 171.525 (168.5-177.0). Soyoil stocks were at 1.684 billion pounds compared to the average trade estimate of 1.713 (1.600-1.807).
• Weekly crop progress/conditions report has the soybean crop rated at XXX, compared to trade estimate of 58% G/E (57-58) and last week at 59% G/E.
• Spreads: X/F 6 ½ carry (6-7 ½ carry), F/H 1 carry.

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