Wednesday September 11, 2024

• Markets are mixed this morning as trade anticipates the USDA report tomorrow
  • Soybeans are sitting on either side of unchanged as they try to recover from their heavy losses yesterday
  • Wheat is attempting to rally off of winter wheat planting concerns in the Black Sea and US Southern Plains 
  • Corn is sitting slightly lower
• Why did beans suffer those heavy losses yesterday? Soybeans maintained their 65% g/e rating this week. This seemed to be enough for the bears to bring things lower as the market becomes more confident that this crop is going to be a big one
• After last years issues in the Panama Canal the Panama Canal Authority has proposed a $1.6 billion dam in the Indigo River to reduce the impact of future droughts on shipments. The dam would take 5 years to complete and has had some major push back from local communities and farmers. If they go through with the construction of this dam it would have a big impact on shipping costs and export activities
• Chinas August bean imports are up 30% from last year and at an all time high of 12.4mmt (see chart below) imports are forecasted to be stronger than initially anticipated