After a strong Monday and quiet markets overnight the markets have opened lower today as rain has been added next week for the dry southern areas and no indications of a frost threat well into October.
Sources say that President Trump is tentatively backing a plan to increase biofuel blending.
China appears willing to make good on their promises to secure more US Ag products with another gesture of goodwill again this morning. This morning they purchased another 260 MT of soybeans for the 2019/20 marketing year. (Let’s not get too excited, they can cancel just as quick)
Last night’s crop ratings had corn harvest at 4% complete which is slightly behind the 5 year average of 7%.
Basis was starting to strengthen last week across the Midwest with lower CBOT prices. But Friday and Mondays rally in the CBOT has resulted in numbers slipping back down. This is a sign that producers and commercial elevators were heavy sellers on the short rally and end users are filling their pre harvest needs.
Producers should take advantage of any CBOT or basis bounce for the old crop or any fall bushels that they have left to move. Harvest has hit central IL which is going to put pressure on basis regardless of the crop size as stocks increase. I would advise producers with adequate storage for their fall corn to have 50 % of your crop sold and sit tight on the remaining portion until late winter/early spring.
Have a Safe Day!