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We have seen interior basis values strengthen and harvest progress cross the halfway point across the bulk of the corn belt.
Oil share collapsed 1.3% today which ran the oil contract down 175 points and meal up $9/st. The action isolated the effect to the spread as crush was unchanged. Oil simply swapped value with meal in a 1 for one fashion.
Fed Chair Jerome Powell spoke today before the Economic Club of New York. Powell emphasized strong economic data could call for higher rates. The Fed is trying to weigh between two goals: 1) getting inflation fully under control and 2) avoid doing too much and causing unnecessary hurt on the economy.
The export sales report was decent – not overwhelming, but decent. The past two weeks of reported wheat export sales have helped us catch up - now trailing the seasonal pace for marketing year to date sales needed to hit USDA's target by just 4 million bushels. Marketing year to date soybean export sales fall short of the seasonal pace needed to hit USDA's target by 144 million bushels, versus being short by 150 million the previous week. Marketing year to date corn export sales fall short of the seasonal pace needed to hit USDA's target by 43 million bushels, versus being short by 44 million the previous week.
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