Grain markets quiet before the USDA crop report.
Expect to see some volatility today as the USDA crop report is set to be released at 11 am CDT and following at 12 noon will be FSA’s updated farm program participation data on major crop seedings. The average yield guesses for todays report are 175.5 BPA on corn and 51.3 BPA on soybeans. Those numbers are lower than the July forecast but higher than private estimates.
We are starting to see world grain prices beginning to rise in Brazil compared to US prices on corn and a rise in SRW wheat prices in Russia compared to the US. This should start making our corn and wheat markets competitive in exports in the world markets going forward in the coming months.
Central US will see below normal rains and above normal temps for the last 10 or so days of august as a high pressure ridge builds. The extended forecast is showing the heat staying persistent into September but confidence is low. Overnight, some areas of MN received good rainfalls of 2” and through the weekend, the Midwest is forecasted to see somewhere in the neighborhood of .5-1.5” of rain. After that, the dry and warm weather will take over the regions with highs in the upper 90’s.
Live and feeder cattle futures closed higher yesterday with a firm outlook happening today on early trade today. The crop report could have an effect on the afternoon trade depending on the USDA crop report and the FSA crop seeding report.
$189 cash sales were seen in the IA region last week, KS saw $186 which is $6 higher than last week. Packer bids were quoted at $177 with feedlots passing asking prices of $182 or higher. October cattle are stuck in a range of roughly $8 for the past 3 weeks as the market is consolidating summer gains. New highs are going to be needed to be seen to further support this big rally we had seen even with the cash market being kept firm.