Morning Grains Report 7/27
Stronger overnight session in relatively light volume totals. Extended weather models continue to show no outright drought relief in sight; in fact, I view this morning’s outlook as more threatening. Traders expect more declines in crop ratings on Monday, and want to continue to support the market heading into the weekend. Outside markets are quiet, but marginally higher at this time. We continue to see futures open interest drop in soybeans, as traders have sought the comfort of the options markets.
Weather appears to be trending toward less crop relief than what we had seen recently. The extended maps are still leaning hot and dry, although not as hot and dry as what we have seen recently. Regardless, there is nothing in the outlook that is overly favorable for crops, and the market is responding accordingly. The maps below show July temps and precip versus normal levels….some large areas of the region averaging +10 degrees above normal and 10% of normal precip for the month. I’m no agronomist, nor did I stay at a holiday inn express last night, but that’s not good…
