Wednesday July 17, 2024

• Markets are sitting in the green this morning and are trying to stabilize against favorable US weather and good crop conditions
  • Wheat is leading the recovery after 3 straight days of losses 
• Soybeans and corn are still at record shorts while specs are still unwilling to cover the positions
• China has been an active buyer of soybeans, unfortunately not of US beans. China is taking advantage of Brazil’s cheap beans and purchased 27 cargoes
  • China has purchased 7mmt of new crop beans from Brazil for delivery next year, meanwhile China has only made one purchase of new crop beans from the US
  • Its starting to look like China may stock pile Argentine beans instead 
• Social media has been filled with reports of a derecho in the US (a long lived and damaging thunderstorm) we wont know the extent of the damage for a while but there is speculation on how it will affect production. Some news outlets are saying parts of Iowa, Illinois, Wisconsin and Indiana will see a yield hit from the storm as some crops may not be able to bounce back after the damage