Written Commentary
MORNING COMMENTS
Geopolitics:
Israel has stated that they will respond to the 200 missiles shot from Iran yesterday. This was the largest launched against Israel by Iran, in history. Israel’s ground force offensive move into Lebanon is expected to last for weeks. The US has stated it is ready to defend Israel, but has not stated that we will participate in any offensive strikes against Iran.
Macroeconomics:
The JOLTS showed August job openings increased to 8.04 million which was higher than expectations and 300K more than July’s report. Today’s ADP Non-Farm Employment Change report came in better than expected. The report showed 143K increase number of employed people compared to last month, higher than the expected 124K. Tomorrow we will see the unemployment claims report which is expected to be 221K unemployment fillings during the last week.
Ag Fundamentals:
Harvest progress is sure to move right along this week due to such a clear forecast. The next 7 days has rain in the northeastern states and Florida. Everywhere else is dry, almost too dry. Moisture levels coming off the combines in many areas of the US are low. Bean moisture in single digits could put some downside pressure on yields/production. The USDA just lowered quarterly stock numbers on Monday. We could see an additional cut in this years crop production on the WASDE report next Friday. Corn is higher this morning following wheat. Wheat is up on news of wheat export restrictions in Russia. They may restrict exports due to deforestation regulation and Russian grain export unions are calling for a limit on wheat exports.
Export & World News
Thailand bought 120K MT of animal feed wheat on Tuesday, and they are seeking an additional 60K MT. Japan is looking to buy 137K MT of food-grade wheat from the US, Canada and Australia. Jordan is looking to purchase 120K MT of milling wheat.
Malaysian palm oil futures were up 190 ringgit overnight, at 4196.
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