Weekly Ag Markets Update - Tuesday, Aug. 18

Wheat: Winter Wheat markets were higher last week after another choppy week of trtading.Wheat has traded in a choppy fashion all week as the market tries to decide which way Wheat prices are going here and overseas.  Spring Wheat was developing under good growing conditions in both the US and Canada. Yield reports from the central and southern Great Plains have been variable, but generally a little better than expected. Soft Red Winter yields are high. The Winter Wheat markets are in downtrends on the weekly charts. It is still dry in France and Russia and now Spring Wheat areas of Russia are being affected. Russian Winter Wheat yields have improved over time as harvesters move into areas that had better-growing conditions. Australia remains in good condition and is getting beneficial rains in the east. The west is too dry. About half of the Argentine Wheat belt is too dry.

Weekly Chicago Soft Red Winter Wheat Futures

Weekly Chicago Hard Red Winter Wheat Futures

Weekly Minneapolis Hard Red Spring Wheat Futures

Corn: Corn was higher on the bullish FSA data and as a derecho in Iowa and northern Illinois flattened many Corn crops in both states.FSA showed less than expected certified area for Corn in its August update but cautioned that the data was very incomplete due to restrictions imposed by COVID-19. However, the market took the data as true and ran with it. The derecho brought 100 mph winds to parts of Iowa and Illinois and flattened many Corn crops. Some of these crops will not recover. Some silos and other storage and processing facilities were damaged or destroyed. It is not known how much of the Corn can recover. Initial loss estimates are up to a half-million bushels lost. Corn in surrounding areas looks good and USDA called for record yield potential in its reports last week. These ideas are now in doubt due to the derecho and the losses it caused.

Weekly Corn Futures

Weekly Oats Futures

Soybeans and Soybean Meal: Soybeans were sharply higher last week in response to a derecho passing through Iowa and Illinois and bullishly construed FSA certified acres data. The USDA production reports and supply and demand reports were negative as USDA showed higher than expected yields and increased production. The FSA data showed much less than expected certified acres in its August reports.FSA said that the data was very incomplete due to a lack of registration due to COVID-19 restrictions, but the market took the data and ran higher. It found additional support from a derecho that damaged some Soybeans, especially in Iowa and northern Illinois.USDA noted that China had bought a lot of new crop Soybeans in its weekly sales report on Thursday. China has become a much more active buyer of Soybeans here in the US and has promised to ramp up purchases in order to comply with commitments it made under the Phase One trade deal. Its commitments have been thrown into doubt by the continued political tensions between the two countries. Brazil prices are higher for the rest of the world as it starts to run out of Soybeans to export, so China and the rest of the world will look to the US for additional supplies. The US weather is considered mixed for Soybeans with cooler temperatures and some rain in the north, but dry conditions further to the south.

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