Thursday August 6, 2020

Markets had a morning of recovery that seems to have been pulled out from under us – beans and corn able to stay close to unchanged with wheat struggling lower again
- Any ‘positive’ news in the wheat market – new sales, strong exports – seems to be able to entertain the markets for a short time before the bears pull it back into the reality of coming out of harvest with great production and good quality wheat
The strong yield potential as well as rains on the forecast will keep a lid on any gains attempted this week
Weekly U.S. export sales strong again
- Corn new crop sales came in right at the high of expected range
- Soybean new crop sales came in above expected
- Wheat sales came in right within expected range
Private yield estimates continue to come in above the USDA July estimates
- August USDA report is out next Wednesday and we will see if the government estimates align with the private projections
Canadian Farm Marketing Solutions released their estimate for the total wheat production at 39 MMT – this would be a new record, surpassing 2013’s 37.6 MMT
China reportedly purchased 4.6 million bu of soybeans in the last 24 hours as it continues to cover their needs
- Chinese corn purchases have slowed after a hefty wave in July – domestic prices remain higher than import as they auction off state reserves