Today’s Prices
Grain markets higher to sharply higher today as the outside markets bounced and chart and technical signals may be getting to sign some by signals contributing to the strength in grain.
Grain Market News
7-Day Observed Precipitation
We have had numerous rounds of showers and thunderstorms over the last 4-6 days.
Each day with a little more rain we have been filling in some of those dry pockets and areas.
Today’s Conditions
Our current condition shows a bath of rain running from central Illinois into Indiana.
That rain is moving mostly to the east, we also have some rains in South Dakota and northern Nebraska which is moving to the east.
The Delta into the southern plains is remaining dry and hot into the upper 90s and 100s.
7-Day Precipitation Forecast
Most of the rain in our 7-day forecast is today and into tomorrow and then the weekend into early next week we start to see a drying trend.
Unfortunately, the 7-day forecast does not have much rain for the central, southern plains or the Delta.
Temperature Outlook
Our outlook shows temperatures to be at or below normal for most of the belt but along with those seasonal temperatures, which are mostly in the 80s for the heart, will be below normal precipitation for both the 6-10 and the 8-14 day.
Grain Market News
Unleaded Gasoline
Ethanol Swaps
Weekly Ethanol Production
Production was down slightly for the 3rd week in a row, but ethanol production has been running very close to the level needed to reach the USDA corn estimate.
Year to date ethanol production is up 7.1%, the USDA is estimating that corn use will be up 6.8%.
Weekly Stocks of Fuel Ethanol
Stocks bounced to 23.497 million gallons and that’s up 11% from last year.
We’ve seen stocks of fuel ethanol down and up repeatedly, so overall we don’t believe that stocks of ethanol are going to rally substantially.
That will likely end up the stock marketing year very close to the seasonal level.
Crude Oil
The legend for corn prices is shown on the right side and the price for crude oil is shown on the left side.
Crude oil and corn are running very closely together because over 1/3 of US corn is used as a fuel in ethanol.
Also, moves in the outside market have a significant influence on the grain markets as well.
You can see that both corn and crude oil were rallying steadily from the Fall of 2020 through the Fall of 2021.
Then corn and crude both started to accelerate this past winter in January and February, when Russia invaded, crude oil exploded to the upside and then corn did as well.
September Corn Chart
Corn prices fell dramatically over the last 3 weeks, but we have seen a significant bounce.
Today’s high at 6.23, 41 cents above yesterday’s low at 5.82.
September Soybean Chart
Soybean prices also have been in a free fall lover the last 3 weeks.
Prices rebounded nicely, today closing at 14.85, that’s 61 cents off yesterday’s low.
This turned the technical indicators to the upside.
September KC Wheat Chart
Wheat prices have been turning to the upside over the last day and a half, enough to turn the technical up as well.
Wheat has had a massive pull back over the past month and the first objective on the chart would be 9.92.
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