Market Update – Aug 9, 2013

Cereal Grains & Soybeans

Prices continued their downward slide for corn and wheat this week. Favorable weather has helped to keep new crop corn and soybean conditions rated 60-65% good or excellent. Meanwhile, many producers continue to empty grain bins with the expectation of an abundant harvest this year. Corn harvest is expected to begin in parts of the Southeast over the next couple of weeks as well. Mississippi’s corn crop is a bit behind the normal pace with 13% mature compared to a 5-year average of 41%, but 62% of the crop is rated in good or excellent condition. Strong imports from China have helped to stop the slide in soybean prices and Monday’s World Agricultural Supply and Demand Estimate is expected to revise soybean production down on the year. Soybean progress is behind normal with 39% of the U.S. crop setting pods this week compared to a 5-year average of 51%, but the forecast calls for a timely rain in many of the major soybean-producing areas. Winter wheat harvest is just ahead of the 5-year average with 87% of the crop harvested compared to a 5-year average of 86%.

Cotton

Prices got a major boost Wednesday as the U.S. dollar weakened, making our goods less expensive. This brought about some buying from global partners, including China. Further, cotton futures on China’s exchange improved adding to the positive sentiment. The sentiment continued Thursday, as prices were mildly higher, before Friday brought about some cooling down within the market.

Market Summary:

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