Morning Commentary

Sept corn unchanged at $3.6425

Nov beans up 11 ¾ at $9.045

The DOW is up

USD is stronger

Crude oil down $.15 at $65.76

Good morning,

Corn prices are steady this morning, with the new-crop DEC18 contract trading near $3.80 per bushel. From a macro perspective, there’s a bit of optimistic talk surrounding NAFTA negotiations and the fact China is sending in delegates this week to start a new round of Chinese negotiations. Bulls also continue to point towards strong domestic demand and good export sales. Bears are talking about more wide-spread beneficial rains and nice summer temperatures across important growing regions of the U.S. Bears also doubt there will be any concerns or risk premium added for early frost fears as the crop continues to run well ahead of schedule. From a technical perspective, the trade is still seeing extremely strong resistance on the charts up in the $3.90 to $3.95 area vs. the DEC18 contract. Once we get up north of $3.90 we start running into some very important “Moving Averages” which could be difficult to clear without more extreme weather or yield uncertainties. From a more traditional fundamental crop perspective, most all eyes inside the trade will be eager to see results of this week’s Pro Farmer Midwest Crop Tour. The tour always offers up lots of media attention and detailed headlines about the crop.

Soybean prices are higher this morning and trading just north of $9.00 per bushel as traders continue to debate Chinese demand and total U.S. production. Bulls are happy to see +30 cents added to prices last week and are now hoping positive trade headlines can come from meetings scheduled this Tuesday and Wednesday with Chinese delegates who are flying into Washington.

With Freight demand red hot this year, manufacturers expect to be delivering new trucks into next year. North American freight-haulers ordered more than 300,000 Class 8 trucks in the first seven months of this year and are on track to order a record 450,000 of the heavy-duty vehicles for the full year, according to ACT Research. That would be the largest book since 2004, when orders reached 390,000, according to analysts. (Source: WSJ)


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