The soybeans and meal finished moderately lower today. The oil share gained. The USDA crop condition report showed a 1 % up tick in the good to excellent category today at 60%. Given the recent rains a further increase in conditions is possible to finish out the growing season as we exit august. There is still growing to be done especially in beans. We can very well continue to show improvements. Given the early fears during the growing season this would be quite fitting. It is important to remember where the yield was last year. We started the year with a estimated 4 bu per acre less estimate. That is quite a bit. The genetics continue to improve.
In addition the south American farmer is sitting with large stocks compared to a year ago. The Brazilian has approx., 3 times the amount of bean stocks. The current demand is healthy from the US. The longer term may begin to feel the pressure of the more than ample global supply. Look for oil share, especially in the new crop to continue to gain. Producers use rallies to hedge. Quantify your risk
Be Well