The markets are attempting to recoup from yesterday’s steep losses, as equities, crude oil, the US Dollar, and grains are all trading higher this morning. After losing 15 cents yesterday, nearby November soybean futures are 13 ½ cents higher this morning, and corn has added another 5 cents so far today after gaining 3c during yesterday’s action. For the moment, the US markets appear to be stabilizing themselves following the macro sell-off in response to China’s economic woes. The Chinese equity markets did drop another 7-8% overnight, but news reports of an interest rate cut from the Chinese government is providing the markets with some much-needed relief.
Fundamentally, a general lack of demand for corn, beans, and wheat is still plaguing the US grain markets, as the Dollar Index is still placing a premium on US-origin grain.
Updated crop conditions yesterday showed corn ratings dropped 1%, down to 69% G/E nationally, while soybean ratings were unchanged at 63% G/E. Ratings for Iowa were unchanged for both corn and beans, as corn is rated as 82% G/E locally, while beans remain at 77% G/E.
The 6-10 day weather forecasts are calling for near-normal precipitation, and above-normal temperatures, as we are expected to return to the mid-80’s next week.