Morning Comments, August 06, 2020

Red Barn Behind Field

Opening Calls:

Corn: Steady to 1 lower 

Beans: 1 to 3 higher

Corn found a little bounce after the prior day's fallout. With no fresh headlines to digest, we're left with weather and crop condition scores. The trade is eager to find out what next Wednesday's USDA report will hold. This won't have any field survey information, only satellite imagery, and condition scores. With the amount of variability here at home, you can expect a wide range of estimates from private analysts ahead of it. Either way, most expect a 180+ yield still. Thankfully, U.S. commodities are the most competitive in the world amidst a falling dollar. 

Soybean supplies are running short in South America and U.S. prices are now edging out Brazil. This should leave Chinese purchases being sourced from the U.S. A meeting is scheduled between U.S. and Chinese reps at the end of next week. This should clarify guidelines and goals for the current Phase One deal. A better understanding of our relations with China will help give this market direction, for better or worse. 

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