Written Commentary
Ag Market View for July 26.24
July 26, 2024
MORNING OUTLOOK
Grains are lower. SX is down 12 cents and near 12.71. SMZ is near 339.0.. BOZ is near 55.86. CZ is down 8 cents and near 5.19. WZ is down 6 cents and near 7.02. KWZ is down 7 cents and near 7.05. MWZ is down 7 cents and near 8.93. US stocks are sharply lower on concern about Asian markets. China property stocks are sharply lower. US Dollar is higher. Crude and most commodities are lower.
US stocks are lower on concern Congress may raise individual and corporate taxes to pay for big stimulus bill. US Congress needs to raise US Debt selling to avoid reduced funds for key programs. Some feel Delta variant virus may be slowing the economy but may not breaking it. US Dollar has rallied on talk of US Central Bank tapering but most are negative the Dollar as US debt increases.
Weak financial markets and higher Dollar is weighing on grain futures. Early US corn yields are below expectations. Bulls talking a 173.0 US corn yield. Bears awaiting forecasted increase in US export demand and reopening of US gulf export capacity,
Slow China buying US soybean pace and approaching US harvest offers resistance. Still some feel fact China is the big short in soybean cash and futures suggest a higher soybean price trend. Uncertain 2022 South America weather could offer support.
Higher US Dollar and concern over slowing US/World economy weighed on wheat futures. Dry US weather supportive. Rains are forecasted for Russia wheat areas.
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