Futures Close Report: 11th July 2017

US Markets have the opportunity to break from the current weather based hype to review the latest USDA S&D Report due on Wednesday pm.   In the past 20 years, USDA has adjusted U.S. corn yield between June and July five times, and only three of them reflected a reduction.  USDA adjusts soybean yields in July less frequently, as much of the yield potential for the oilseed depends on August weather, particularly rainfall. Three changes have taken place over the last 20 years, all of them reductions.

Residents of villages along a key highway for grains exports in Brazil’s northern Para state continued to stage protests on Tuesday blocking the flow of goods like corn and soybeans to nearby ports,  Cereals exporting group Anec said the situation in Pará could impact its projections for corn exports. Brazil’s northern grains ports could account for 25 percent of total corn and soybean exports this year.

China’s 2017/18 soybean output is expected to reach 14.73 million tonnes, up from last month’s forecast of 14.1 million tonnes.  The increase follows some farmers in northeast China affected by drought switching to planting soybeans instead, since the dry ground makes corn planting difficult.  China’s 2017/18 corn output is expected to reach 211.91 million tonnes, little changed from last month’s forecast of 211.65 million tonnes, according the China Agricultural Supply and Demand Estimates report.