Market Signals Weekly Report
The following are comments and discussion items from the weekly conference call of the Market Signals Team.
Discussion Items :
- MS has no new cash recommendations.
- U.S. stocks, U.S. dollar, crude oil and gold futures trading higher.
- Managed funds added to their net short corn futures but reduced soybean longs.
- The U.S. 2 week Midwest weather forecast is normal temps and normal rains.
- USDA next report is August 12. This is the first official summer crops estimate based only on farmer surveys.
- Trade now estimating U.S. 2020 corn yield near 182.0 and soybean yield near 52.0.
- U.S. farmer remains reluctant seller of especially new crop corn which is firming cash basis in areas.
- September soybean futures are near $8.70. China buying U.S. soybeans is supportive but the big U.S. and Brazil crop is negative.
- September corn futures are near $3.11. Fundamentals are bearish but the key to market direction is if the U.S. farmers have enough storage.
- September Chicago wheat is near $4.91. Talk of higher Russia, Australia and Canada crops offer resistance.
- Q4 demand for U.S. corn and soybean exports is improving.