July 29, 2019: Mark's Market Talk

July 29, 2019


This last week was very lackluster in the grain markets. The weather premium that was building in the corn market has disappeared as the December contract is fighting to stay above the 4.20 support level. For the week we were 11 cents lower as the weather got better. Basis levels continue to be strong but we are starting to see some symptoms of rationing as our exports have dried up and there are ethanol plants slowing down. Add all of this up plus the inability of the USDA to tell us how many prevent plant acres there really is, and it is hard for the trade to get bullish. All eyes will be on the August reports which should have some better planted acre numbers then we saw in June. November beans lost 20 cents last week. We saw a negative export number for beans as the cancellations were more than the shipped bushels. The funds are still short the bean market and they are waiting for direction either from the crop report or the weatherman. With a huge amount of late planted crops things will probably stay on the crazy side for a long time this summer. August weather normally makes or breaks the bean yields. This year that will continue into September barring an early frost. That’s a word that will put fear in a lot of producers this year. Even a normal frost date will cause damage this year.  
 
Posted: 7/29/2019 8:59:54 AM by Rob Matherly | with 0 comments