Written Commentary
OPENING COMMENTS
Macroeconomics:
The EU and Mexico are now subject to a 30% tariff on nearly all goods imported into the US starting August 1st. Mexico is the #1 export destination for US corn and the EU fall at #5 destination for US corn. The EU is also the 2nd largest destination for US soybeans, right behind China.
Ag Fundamentals:
The USDA WASDE did not offer any major catalysts for grain prices. Mostly neutral with a slightly bullish corn ending stock adjustment. Wheat yields increased +1 bu/acre which was foreshadowed by the +29% jump in good/excellent numbers for Nebraska wheat conditions last week. Iowa and Illinois received more rain over the weekend, and the northern plains are expected to see scattered rain over the next 2 days. Northern IL and Norther ND and MN seems to be the only concerning areas on the drought monitor.
Canada Wildfires continue to cause air quality concerns in the northern Midwest. Air quality is important in plant development and it can cause damage to roots, hinder flowering and lower yields.
Export & World News
The USDA reported a flash sale of 219K MT of US soybeans for Mexico for the 25/26 marketing year.Algeria is in the market to buy some milling wheat and up to 240K MT of animal feed corn.
Malaysian palm oil futures were up 58 ringgit overnight, now at 4232
Daily Trading Limits: Corn $0.35 (expanded $0.55); Soybeans $0.75 (expanded $1.15); Minneapolis Wheat $0.60 (expanded $0.90); KC Wheat $0.40 (expanded $0.60); Chicago Wheat $0.40 (expanded $0.60)
Weather Outlook
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