Morning Commentary

Sept corn up 1 ¾ at $4.02

Aug beans down 1 ¾ at $8.6225

The DOW is up

USD is stronger

Crude oil down $1.06 at $57.52

Good morning,

Corn  prices in the DEC19 contract have tumbled over -50 cents from the high posted back on the 15th of July. In other words, in just 12 trading sessions the market has trimmed -50 cents off the price. As a bull that’s extremely hard to swallow, but with little threat of extreme heat and ample moisture in the forecast there’s very little fresh or new to keep the bulls excited. Demand is very suspect with both ethanol and exports being questioned almost every day. There’s was also competition coming in on the feed side when prices started rallying higher. Technically, the market has collapsed, falling below the 50-Day and 100-Day Moving Averages and about to close below the 200-Day Moving Average.

Soybean  bulls have backpedaled on improved weather, perceived lack of any meaningful progress in Chinese trade negotiations and rumors circulating that a Chinese trade delegation will soon be visiting Argentine crushing facilities and meal processing plants. Remember, Argentina has tried for years to gain access to the Chinese meal market but with little success.

Bunge’s second-quarter results topped Wall Street expectations as the company’s investment in Beyond Meat continued to outperform, which has surged more than 780% since its May IPO. I’m told, net income available to the shareholders was $205 million, or $1.43 per share. Remember, in the second quarter a year ago Bungee came out with a loss of $21 million. From what I understand, Bunge’s agribusiness unit posted a higher profit for the quarter on timing effects from soybean crushing of about $70 million, which the company said would reverse in the third quarter.


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