Grain Recap 6.2.17

Not much new or different in the grain markets this week.  Fresh news is generally lacking to provide direction to the market.  On the macro market front, a softer dollar index help support today’s small futures rally.  Respectable export sales report for beans and wheat was also seen lending support to the market.  The funds still hold net short positions, so any reason for nervousness could contribute to slight short-covering as we saw to end this week.

Planting progress and crop conditions were in line with five year averages, which was slightly surprising to the market.  Near term weather forecasts look favorable to wrap up planting, and even replanting, in most areas.  Some talk has surfaced of dryness concerns in the Dakota’s wheat country.  However, not enough to make too much impact on the market just yet.  Some chatter about the slower start to this year’s growing season has given a slightly more friendly bias to producer price sentiment.  However, the board has done little to help producers make favorable sales on either old or new crop, and basis has done even less.  Corn basis has softened nearby as river markets sort out the impacts of high water and increase freight costs.  Bean basis has also softened slightly from last week’s uptick.  End users are fully aware of the ample supply of grain sitting in the country unpriced and are waiting and expecting to see a flush of grain at wider basis sometime between now and harvest.

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CHS – Rochester Grain Team
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