This morning we have the markets trading lower here with September corn down 3 cents, September wheat unchanged, and September soybeans down 8 ¾ cents as better than expected precipitation covered a good portion of the Midwest last night.
Showers over the Midwest were better than expected over the last 24 hours, helping to alleviate some concern over dryness in the northern and eastern Iowa, overall 30% of the Midwest received timely rains. Planalytics is looking for a dramatic cooling trend to begin this week and into next week that will have temperatures in the Northern and Central Plains into the 70’s and 80’s.
Ukraine’s ag minister said the country could lose between 500,000 and 550,000 tonnes of grain in Eastern Ukraine due to the ongoing war. This would represent 1.5% of total production expected by the USDA in the July WASDE report. Wheat futures have continued to find limited buying as traders seem comfortable with the state of Ukraine grain exports. Several export sales from Ukraine to Egypt were booked last week, indicating the world’s largest wheat buyer is confident in Ukraine’s ability to supply grain through the fall.
The weather doesn’t appear to be cooperating with European wheat harvest this year as more rain is expected over the next 10 days. The wetter than normal harvest has many grain buyers concerned about quality and has caused the spread between feed wheat and milling wheat to widen. Talks that feed wheat is trading at a $40 per ton discount to milling wheat has analyst thinking about the implications of this on corn imports from other countries. With cheaper feed wheat, corn imports into Europe will likely decline.