Monday July 22, 2024

Markets are trading higher this morning with soybeans up well over 20 cents
Wheat harvest is well underway, Ontario is pegged at 1/4 of the way completed
There was a flash sale of 105k tonnes of soybean cake and meal to unknown for 24/25 delivery
Soybean prices were up on the overnights and remain up this morning, there’s some speculation on whether this increase was a result of news that US president Biden would not be seeking re-election or if it was due to funds correcting their record short position
- With Biden dropping out there is some uncertainty on how it will affect the grain market
French wheat ratings fell to an 8 year low this week 52% g/e vs 80% last year. Harvest pace remains slow at 14% compared to 51% last year. Growing areas continue to receive heavy rainfalls and limited GDD which has been hard on crop development. This week looks promising for weather as temperatures are supposed to warm up, which should help with the crops ripening
The US corn belt is looking at above normal temperatures through the 15 day period with very limited precipitation in the 10 day forecast
Fund traders continue to hold a big net short position in the corn market and the soybean market