Weather Forecasters, specifically the National Weather Service, is calling for potential heat to return next week in the Midwest. In my view if the heat returns, it should be beneficial to corn and beans that have received decent rains the past few days .Crop tours are in full swing in front of the September crop report from the USDA on September 12. In my view if we receive the heat, due to an early planted crop pre the USDA, corn harvest progress should advance to almost 10-12 percent harvested by the time the September crop report. I believe that at present spread differences in wheat vs corn in the futures and cash markets that the southern Midwestern producers will seed a little more winter wheat given the early harvest of corn. I therefore think wheat will tighten vs corn in both KC and Chicago from present values to at or near 1.20 wheat over corn. First notice day on the September futures contracts is next Friday. Support rests at 365 to 368 CZ18, 532 to 536 WZ18 and 972 SX18 in my opinion.
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