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A green Tuesday! Some technical wins today...
- Dec corn traded above its 100-day moving average for the first time since June 14th
- Dec wheat traded within 5 cents of its 100-day average (but failed to hold above the $6 mark)
We have seen producers meeting the futures’ rally with sales today.
Reuters reported that precipitation in Rostov, Russia's top winter wheat producing region, was about 60% below average over the past seven months. That is the period's driest in at least three decades. Unfortunately for them, the forecast is pretty bone-dry through mid-October, a poor outlook for planting. This comes after reports this morning that Russia's fifth-largest grain producing region, Voronezh, has declared a state of emergency due to drought. Russia is currently 47% planted, but future dryness could lead to acreage losses or germination issues.
August's crush value came in at exactly expected at 167.6 million bushels. The previous month was 193.3, and this month last year was 169.0.
StoneX came out with their October Customer Survey this afternoon and showed that they expected even bigger corn and soybean yields. 184bu/acre corn (from 182.3bu) and 53.5bu/acre soybeans (from 52.6bu/acre). The USDA is at 183.6 and 53.2 respectively.
This morning, the USDA confirmed the following U.S. export sales for delivery to unknown destinations in 2024/25:
▪️195,000 tonnes of corn
▪️120,000 tonnes of soybeans
This afternoon we also saw Iran launch a series of missiles on Israel in response to assassinations. Ukraine/Russia's conflict may be out of the headlines for now, but globally, tensions are high.
Looottts of fund buying seen today, especially for corn. Corn's short position is estimated at just 40% of its size seven days ago.
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