Thursday Aug 6, 2020 By: Eric Peterson
Corn was mixed to lower overnight as the December contract saw a narrow two cent range. Currently, the December contract is just above the contract low of $3.57. Weekly ethanol production dropped 27,000 barrels per day to 931,000 bpd and inventories were unchanged at 20.3 million barrels. Corn continues to consolidate at the low end of the range after Tuesday’s sharp decline.
Soybeans traded slightly weaker overnight as overall the crop looks decent with few threats. Estimates for USDA yield are almost all above the current 49.8 bushels per acre. Brazil will begin to plant soybeans in mid-September, harvest in January, so the U.S window is quite narrow. Look for slightly lower trade as soybeans begin to trend downward. The November contract closed below the 50 day moving average for first time since early June.
Spring wheat continues its mixed trade with a downward trend. The September contract broke $5.00 overnight setting a new contract low. The Northern hemisphere is seeing harvest and increasing supplies. Look for weaker trade today as a decent sized U.S crop pressures the market.
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