Grain markets are lower as we head into the September WASDE. Most are expecting a drop in corn yield, while beans aren't expecting to see many fireworks.
The SX/SF seasonally bottoms out over the next week and then firms into harvest. If still needing to roll a portion of your shorts forward, target -15 or better with plans to get more aggressive if we hit -16 on the SX/SF.
Weekly drought monitor data released Thursday showed 25% of the U.S. corn area experiencing some form of drought, down 3% from the prior week, while 27% of the soybean area is experiencing drought conditions, also down 3% from last week. Both figures are up from 13% and 22%, respectively, at this time last year.
Barge shipments on the Mississippi River for the week ending September 5, according to the USDA, were down 33% from the previous week overall. Soybean shipments are down 45% and corn barge movement is down 26% compared to last week.
The Buenos Aires Grain Exchange has old crop corn harvest at 97% complete. New crop corn planting is sitting at 6% complete.
Barge drafts continue to see reductions, pushing freight higher. Recent rains however and the 6-10 day precipitation outlook should start to support river levels.
Outside markets are trading mixed: nearby crude oil futures are down $2.50+/bbl, the Dow Jones index is up 480-490 points, and the U.S. dollar index is up 5-10 points.
Today's reports include Weekly Export Sales, September WASDE, and CFTC Commitment of Traders.