By MATT PIKE
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GENERAL COMMENTS:
December corn closed up 1 1/4 cents per bushel at $4.06 1/2 and March corn was up 1 3/4 cents at $4.24 1/4. November soybeans closed down 1 1/4 cents at $10.41 1/4 and January soybeans were down 1 1/2 cents at $10.60. September KC wheat closed down 3/4 cent at $5.06 1/4, September Chicago wheat was down 3 3/4 cents at $5.02 3/4 and MIAX December Minneapolis wheat was down 0.01 cents at $5.8825.
The September U.S. Dollar Index is trading up 0.263 at 97.975. The Dow Jones Industrial Average is down 44.33 points at 44,901.79. December gold is down $3.60 at $3,379.00, September silver is up $0.08 at $38.06 and September copper is down $0.0125 at $4.4800. September crude oil is up $0.58 at $63.38, September heating oil is up $0.0140, September RBOB is up $0.0243 and September natural gas is down $0.027.
CORN:
December corn futures, in two-sided trade, finished slightly better on Monday. Early pressure was coming from not only the continued favorable weather with the primary Corn Belt slated to get more rain amid a cooling trend, but also from thoughts that a major annual crop tour which began on Monday was likely to find more reasons to be bearish corn. After the recent August WASDE had pegged the corn crop at a record 188.8 bushels per acre (bpa) yield with record production of over 16.7 billion bushels (bb), some even believed NASS could ultimately raise yield again in future reports. Talk centered on corn at least having a yield of 186 bpa with some private estimates even inching up to and above the 190-bpa mark. Also adding pressure is the expanding southern corn harvest with Louisiana likely to reach more than 60% harvested with Arkansas moving close to 20%, pressuring cash values. So far, Delta corn yields are reported to be running well above a year ago. On Monday morning another new corn sale was announced -- 4.9 mb sold to unknown destinations. Demand remains solid on the export front along with corn used for ethanol. Weekend rain fell in the Northern Plains, Upper Midwest, with more rain early Monday for parts of Nebraska, Iowa and into Minnesota and Wisconsin. Funds remain net-short the corn market. DTN's National Corn Index is $3.65 and 19 cents under the September futures.
SOYBEANS:
The soy market was quiet to start the new week with soybeans trading to a slight loss late, while bean oil was slightly higher in two-sided trade and soymeal fell for the third consecutive day. Weather continues to be very favorable into the first half of September. Weekend rain in the Northern Plains, Upper Midwest and primary Corn Belt will be followed by a cooler and wetter pattern beyond Tuesday. The trade is awaiting news from the ongoing Pro Farmer tour which will conclude Thursday with a yield and production estimate. The calendar spread in beans is suggesting we could see another bump in soy yield in coming reports. Export business in the new-crop slot continues to be anemic with zero China soy purchases on the books so far. At a time when U.S. soy exporters usually find strong China buying interest, due to the tariff fight, it seems China has loaded up on more expensive South American beans. Domestically, soybean crush continues to be the bright spot with the July NOPA report showing a record large grind of 195.6 million bushels (mb). A recent farm advisory private tour of Iowa and Illinois revealed record large pod counts, and the DTN Digital Tour results from those two states would likely concur with call for record yields. The southern soybean harvest will likely begin just after the Labor Day weekend, with the large corn and soy crops expected to strain the storage system. Funds begin the new week with a modest bean short and bean oil long and a large soymeal net short of 109,000 contracts. DTN's National Soybean Index is $9.78 and 65 under the November futures.
WHEAT: