Grains Climb Higher to Start the Week

Grains climbed higher to start the week fueled by extreme heat in the Western Cornbelt over the weekend.

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Weather for this week continues to point to hot and dry for the Plains and Western Cornbelt. Nebraska should see high temperatures over the next two weeks that range from 95 to 103 with no real chance of meaningful moisture over that two week period. However, just to the East in Iowa high temps will be mostly in the mid-80s over the next two weeks with limited precip. Rainfall is expected in the ECB over the next week with IL, IN & OH expected to see accumulations totaling 2 inches over the two-week horizon.

Wednesday brings new data from USDA with their monthly supply and demand estimates. US wheat production is expected to slip to 1.748 billion bushels from the June forecast of 1.824 driven by falling spring wheat production. For corn, analysts expect the US yield to fall to 169.6 vs 170.7 by USDA in June.

In international news, Iraq's state grains board has purchased about 50,000 tonnes of wheat from Australia. Egypt's GASC continues to be an aggressive buyer of wheat tendering twice over the last week.

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—Kevin McNew