Good morning,

Corn and soybeans are continuing their selloff this morning with corn down 8 and soybeans off 4. Carryover from yesterday’s Stock collapse after the news of Evergrande’s collapse is one of the factors moving things lower. China’s central bank is expected to add additional liquidity to the market and no one really knows exactly what they plan to do with Evergrande Group.  The company is massive, with a value equal to about 2% of the GDP in China.  The Autumn Festival Holiday ends today.  Real estate is the primary investment method in China where there is a massive amount of cash paid into these homes.  It’s not like the US where lenders typically require 20% down on investment, China pays much, much more of the total equity.  Investors own multiple homes similar to where US investors may own stocks.

National corn and soybean condition ratings each rebounded by a point this week, to 59% and 58% good/excellent, respectively; the former remains below 61% last year and the 64% five-year average, with the latter below 63% LY and the 64% 5YA. Corn harvest moved from 4% to 10% this week, up from 8% LY and the 9% 5YA pace, with corn maturity up from 37% to 57%, above 56% LY and the 47% 5YA. 58% of soybean had dropped leaves as of Sunday night, up 20 points on the week and above 56% LY and the 48% 5YA; harvest of that crop was initially reported 6%, basically even with 5% LY and the 6% average pace. Winter wheat planting rose from 12% to 21%, ahead of 19% LY and the 18% 5YA, with emergence initially reported at 3% done, basically even with 3% LY and the 2% five-year average pace.

There are a few storms moving through the Central US this morning.  We are seeing light rain in Western Chicago.  Rain is going to hang around the Eastern US for the next week, where the West will primarily be dry.  Hard wheat is getting planted out West with no rain in the forecast to help early development.

Have a Safe Day!


Garry Gard