August 11, 2015

Corn

CBOT Prices Two Rivers Cash Bid Prices
Sep ‘15 376’4 -13’6 Aug ‘15 347’0 -13’0
Dec ‘15 387’4 -13’4 FH Sep ‘15 347’0 -15’0
Mar ‘16 398’6 -13’2      
May ‘16 404’6 -13’2 NC ‘15 343’0 -13’0

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Aug ‘15 1014’0 -30’6 Aug ‘15 993’0 -23’0
Sep ‘15 981’0 -27’2      
Nov ‘15 971’4 -23’0      
Jan ‘16 976’0 -23’2 NC ‘15 902’0 -23’0

 

Easy come, easy go; the grains give back most of yesterday’s gains.

Corn and beans were initially lower last night as crop ratings held unchanged from LW.

Most markets turned lower/sharply lower on news China was devaluing the yuan.

This lowers Chinese buying power for U.S. commodities

The currency war continues as other Asian countries will likely follow suit.

Bad news for us considering new crop bean sales to China are down 69% from this time LY.

The devaluation should be bullish dollar. Can the Fed raise rates now?  Dollar has turned mixed.

China’s July exports dropped 8.3% from a year ago vs expectations of a 1.5% drop.

World production news is mixed with Conab increasing Brazil’s production by 2.5 mmt.

Meanwhile, excessively hot weather has forecasters reducing Ukraine’s maize crop by 1-2 mmt.

Weather models remain mixed for the US with forecasts calling for warm/dry weather next week.

Greece and creditors agreed to new bailout which could unlock $94.7 billion over next three years.

 

 

If you have any questions or would like to further discuss grain marketing call Justin Huebner at 641-628-4167.

August 11, 2015