By Kirk Maltais
--Soybeans for November delivery fell 0.6% to $9.00 1/2 a bushel on the Chicago Board of Trade on Wednesday on indications of weak demand.
--Wheat for September delivery lost 0.4% to settle at $5.05 1/2 a bushel.
--Corn for December delivery rose 0.1% to $4.41 1/2 a bushel.
Soybean Shuffle: Soybean cash prices have been on the decline in recent days, with Chicago soybean cash prices roughly 40 cents below the November futures contract, the most actively traded soybean contract on the CBOT. Cash prices are also 20 cents below August futures, indicating that domestic demand for beans is weak.
Egypt Looks Overseas: Egypt's latest grain tender ended with the nation's buying authority purchasing 60,000 tons of Russian wheat, a reminder to grains traders that the U.S. wheat price is still too high to be competitive.
Heat Wave: Hot weather through most of the continental U.S. this week is expected to be supportive for grains in the coming days, after Hurricane Barry failed to deliver the expected amount of rain for already compromised crops. Above-normal temperatures are expected in many areas, including the Central Plains and the Midwest. "At the end of the day, there are major problems with the U.S. corn crop, which eventually is likely to push us to higher prices," said Doug Bergman of RCM Alternatives.
All That, For This? Farms in Illinois should be ready for slim returns on crops, said professors with the University of Illinois. According to crop budget forecasts produced by agricultural and consumer economics professor Gary Schnitkey and research specialist Krista Swanson, profits on corn and soybeans in 2019 will be non-existent for northern Illinois, and slim for central Illinois corn, assuming their predictions on yields and average prices per bushel hold true.
Ethanol Inventories Rise: Stockpiles of the biofuel are up for the third straight week, according to data released by the EIA. Inventories totaled 23.365 million barrels this week, up 7.3% from the same time last year. Production is also on the rise, increasing by 19,000 barrels to 1.066 million barrels a day. For farmers looking for increased ethanol adoption to drive higher corn consumption, this news isn't ideal.
--The USDA will release its latest weekly export sales numbers at 8:30 a.m. EDT Thursday.
--The USDA will release its monthly cattle on feed report at 3 p.m. EDT Friday.
--The CFTC will release its weekly commitment of traders data at 3:30 p.m. EDT Friday.
Write to Kirk Maltais at email@example.com