Today’s close will be dictated by the afternoon forecast. Right now traders on the CBOT floor this morning are debating if corn will hit $8.00 today or early next week.
Markets will continue to be volatile moving higher most days it is hot and dry. But we expect it to get slammed after the 1st meaningful rains. Keep your eyes on the big picture of net worth and pray for rain. This too shall pass and will be much less difficult than the 80’s were.
Chinese crushers bought a much higher percentage of domestic supplies offered by the government this week, purchasing nearly all the 394,500 tons at the state auction, as import prices from the U.S. skyrocket. However, the total soybean volume sold in this year’s state auctions is only around 1 million tons.
Paraguay is looking to increase soybean plantings to a new record this coming season, up 10% from the previous high to nearly 3 million acres (7.4 million acres); if yields were to rebound to 2010-11 levels (back up from last year’s drought), production would set a record at 8.1 million tons, compared to 7.1 million tons in 2010-11 and 4.4 million tons in 2011-12.
The HGCA sees British wheat planting rising 2% this season to 2 million hectares, the best since 2008; total grain planting is up 3% from last year to 3.8 million hectares. However, poor crop weather there in recent weeks (high rains and low sun, ironically from this country’s point of view) has created concerns about yields.
Russia’s Deputy Prime Minister this morning said that there will be no limits on the country’s grain exports, according to Interfax…
CBOT July deliveries: bean oil 180 contracts and 7/12/12, wheat 27 & 7/9/12.