Weekly Market Wrap-Up

This week’s trade has been flat to lower since Monday. With the exception of wheat moving dramatically higher on Wednesday, corn and beans have faded off their short-term highs that were put in late last week. The Friday market settled at:  September corn- 3.3725, December corn- 3.4475, August beans- 8.8725, November beans- 8.9075 and September wheat- 5.34.

Wheat finished approx. 45 cents higher on the week. France released their initial wheat production forecast at 31.31 mil mt. This would represent a 21% drop year over year if realized. Dry weather thru the growing season has caused this production decline.

There has been lots of China news in the grain industry this week. Monday saw a 205,000 mt ton corn sale to China hit the books. Today, a very large 1.365 mil mt saw was announced. This confirmed news that China was searching for US origin corn last week. China’s corn import forecasts were adjusted, too. The 19/20 marketing year goes to 6.5 mil metric ton and their 20/21 marketing year estimate was adjusted to 7.0 mil metric ton.

Export sales on Thursday were exceptional. Combined corn sales were 1.008 mil metric tons, beans totaled 1.334 mil metric tons and wheat tallied 326k metric tons. Again, more positive Chinese news here as they were the largest purchaser of corn and beans last week.

Ethanol stocks finally posted a gain for the first time in many weeks. Stocks located in the Midwest showed the biggest gain week over week, up 281k barrels. Margins are positive. Weekly production showed 914k barrels per day for the week ending July 3^rd. 

Today’s WASDE report had a chance to make its first changes to the supply/demand tables since the final acreage report last week. There were no changes to the yields for corn or beans. There was a small increase in bean carryout, to 425 mil bu, and corn carryout dropped to 2.6 bil bushels.

Weather has been a focus all week as heat continues to press its luck on the farm and rain has not been as predictable, as necessary. Erratic thunderstorms are still predicted thru early next week and a break from the heat is expected.  Temperatures thru early next week could be 10 degrees cooler thru much of the corn belt. Excessive heat will return mid-week.