Grain Prices Lower this Morning

Grain had trouble holding on to Monday’s gains as prices were lower across the board going into the morning break. At the close, corn was off 2, wheat was off 5, and soybeans were fractionally lower.

Grains found strength on Monday led by wheat were concerns about Brazil’s crop which saw two consecutive frosts over the weekend. Parts of the southern state of Rio Grande do Sul saw deep frost Friday night and more freezing temperatures on Saturday night, said Pedro Aguiar, of Cotrisa cooperative in northeastern Rio Grande do Sul. Also giving the market a bit of a boost was a better than expected wheat export inspection report on Monday which showed 647,000 MT versus trade expectations of 325,000 to 475,000 MT. Soybeans also came in better than expected at 370,000 MT versus trade estimates of only 150,000 to 350,000 MT. Only corn failed to meet expectations with a sub-par week of 711,000 MT as compared to 775,000 to 950,000 MT expected.

After the close on Monday, USDA reported corn harvest at 5 percent complete across the US, lagging slightly the 5-year average of 9 percent at this time of year. The condition of the corn crop was unchanged with 68 percent of the crop rated as good-to-excellent. For soybeans there was a surprising dip in conditions with 61 percent of the crop good-to-excellent as compared to 63 percent last week.

Today, the NOPA monthly soybean crushings report is expected to show a strong pace for August as total crushings are expected to reach 135.018 million bushels. If realized, that would be the highest total for the month since 2007, when members' soy crushings totaled 137.564 million bushels.

在金融市场,美联储将开始会议this week to discuss the possibility of an interest rate hike. While expectations for a rate increase at this week’s Fed meeting have declined over the past month, many investors remain hesitant to place big bets ahead of Thursday’s announcement. This morning, U.S. consumer spending appeared to grow at a fairly healthy pace in August, pointing to solid domestic demand. The Commerce Department said on Tuesday retail sales excluding automobiles, gasoline, building materials and food services increased 0.4 percent after an upwardly revised 0.6 percent increase in July. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. Core retail sales were previously reported to have increased 0.3 percent in July.

—Cody Bills