Tuesday July 23, 2024

  • Markets are mixed this morning, soybeans continue to recover from lows, solid crop condition ratings are weighing on markets
  • China lowered interest rates yesterday from 1.8% to 1.7%, in an effort to boost its economy.  This was the fresh news the soybean market needed
    • China is currently experiencing its longest streak of deflation since 1999
  • US Crop Progress Reports posting impressively seasonal year of ratings
    • Corn conditions declined slightly last week from 68%G/E to 67% G/E, the trade expectations were 68%
      • The crop is 61% silking nationally, vs 56% on average for this time of year
    • Soybean ratings were steady at 68% G/E, above 54% LY
    • Winter wheat harvest sitting at 76% complete, ahead of last years pace (65%)
    • Spring wheat ratings steady at 77% G/E above the 49% LY 
  • USDA reported a flash sale of corn on Monday, 133,000mt to Mexico for delivery during the 24/25 Marketing year
  • Export inspections for the week ending were neutral for corn and beans, slightly bearish for wheat
  • SovEcon increased their 2024 grain production estimate up from 127.4 to 130.5 MMT, wheat up from 84.1 to 84.2MMT
  • AgRural pegged Brazilian second-crop corn harvest at 83% complete, up from 74% last week and 47% last year
  • US Weather:
    • Above normal temperatures are likely to enter the Corn Belt this weekend, the heatwave extends into the 10-15 day period for the western Corn Belt