The Stanford Grain Company Annual Stockholder Meeting will be held on Thursday August 13th at the Allin Twsp Building. Breakfast will be served at 8AM with market outlook and meeting to follow.
Tuesday Afternoon Comments (7/28) Just a little over a month ago, the Dec. corn market started its climb on wet weather concerns. It took 14 trading sessions to rally from $3.73 ½ to a close on July 13th of $4.51 ¾. It then took an even quicker 10 trading days to nearly erase it all as the weather forecast has improved. Up 78 ¼ cents and then down 68 ¼ cents. The rally was fueled by aggressive buying by funds that had accumulated a large short position. Some fund liquidation has occurred on the way down, but the concerning point for bulls would be the fact that the funds still hold a fairly sizable long position. Corn conditions did improve by 1% point in yesterday afternoon’s conditions report. Illinois was up 2%, while Indiana and Ohio were both up 1%. The western cornbelt continues to look good with Minnesota at an impressive 87% good to excellent and Iowa at a very respectable 83%. The trade is now talking about a growing national yield, which is in direct contradiction of the feeling just a few days ago. That is the risk in a wet weather rally. Eventually it dries out in the U.S. cornbelt in the summer. The outside markets show the dollar higher. The Chinese stock market was weaker again this morning. The Shanghai composite index has dropped nearly 30% in the last month. This raises concerns of commodity demand out of the world’s largest consumer.
Soybeans were able to bounce today as crop conditions did not improve as the trade had expected. Overall bean ratings were unchanged at 62% good to excellent. Illinois improved by 2%, with Indiana up 1% and Ohio unchanged. Like corn, the western cornbelt continues to look good. There is a lot of weather to go on beans, and with the challenging conditions that beans were faced with early in the season in the east, it will be important to have good August weather. Overall maturity levels for beans, however, are on pace with the 5-year average. The short term weather forecast looks favorable with seasonal temps and sunshine predicted for the rest of the week. It is expected to be cooler for Illinois and parts of Iowa next week. The European model is trying to hint of a ridge settling over the western cornbelt early next week. The west has had very little weather problems this year and producers there would hate to see a hot and dry finish. Economic concerns in China have the trade wary of new crop export demand for beans. New crop sales are running well below a year ago.
Have a good & safe night!
Arriving at one goal is the starting point to another. John Dewey
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2015 Crop Stanford Grain will accept grain with the Viptera trait but WILL NOT accept corn with the Duracade trait. Thank You for your cooperation.