Weekly Ag Markets Update - Monday, Sept. 21

Wheat: Winter Wheat markets were higher last week as it remains dry in Europe and Russia. Western Europe is likely to get some rains in the short term, but eastern Europe and southern Russia could stay dry. These areas are trying to plant the next Winter Wheat crop but the dry weather and the dry soils are keeping farmers out of the fields.  Less production is likely in Argentina due to drought. About half of Argentine growing areas are affected. The next crop is being planted now in northern parts of the world. Conditions are improved in the US after some rains fell in the Great Plains but the southern Great Plains remains mostly hot and dry. The Midwest has had god rains although some areas in the southern Midwest have not gotten much rain recently.

Weekly Chicago Soft Red Winter Wheat Futures

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Weekly Chicago Hard Red Winter Wheat Futures

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Weekly Minneapolis Hard Red Spring Wheat Futures

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Corn: Corn was higher last week. Demand is holding strong for exports, but it is harvest time and initial yield reports have been strong.USDA has found less damage to crops in Iowa and northern Illinois due to the drought and derecho winds that hit both areas a month ago. That allowed for the higher yield, production, and ending stocks estimates. The harvest is concentrated in the southeast and Delta for now but will soon expand into the Midwest with very good harvest conditions. Demand has held together with China and other countries doing some buying. China seemed to be mostly quiet in the Corn market last week but did buy 210,000 tons on Friday. Other buyers around the world have been active as well. Corn is having trouble making any upside moves despite the demand due to the harvest and stronger than expected very early yield results.

Weekly Corn Futures:

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Weekly Oats Futures

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Soybeans and Soybean Meal: Soybeans and the products closed higher for the week. Funds and other speculators were the best buyers on the week in futures and China was the best buyer in cash markets. Soybeans were the leader to the upside due to the strong Chinese demand. Much of the demand until now has been from China and some in the trade now think China will buy more than what USDA has indicated in its supply and demand tables. The trade generally expects China to shift its buying back to Brazil in the near future, but USDA suggests that China could continue to buy here a little longer than expected.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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