Grains Gain Despite More Rain!
Soybeans: Soybean futures rallied in overnight trading, as traders reacted to the USDA crop progress report showing 54% of the U.S. Soybean crop was rated good to excellent, down 2% from last week. In addition, drought conditions in China’s main Soybean growing region may lower output this year and cause a rise in Chinese Soybean buying later this year. At the end of the overnight session, November Soybeans were trading at $8.33, up 5 ¾ cents.
Wheat: Chicago Wheat futures continued to climb in early trade, as U.S. exports soared despite relatively high prices. The USDA reported 45.7 million bushels were inspected for the week ending August 16th, nearly three times the amount at this time last year. At the end of the overnight session, December Wheat was trading at $696 ½, up 5 ½ cents.
Two-year Note futures: Traders are starting to believe that the Federal Reserve will lower interest rates at their next meeting on September 18th, which is sending a bid through the short end of the yield curve—the most affected by a Fed Funds rate cut. This has sparked a climb in September Two-year Note futures in early trade, leaving them hovering just below contract highs of 103-112 set on Thursday of last week. In early trade, September Two-year Notes were trading at 103-082, up 0-040.
Mike Zarembski, Senior Commodity Analyst
Economic Data Scheduled for Tuesday, August 21, 2007
(All times in U.S. Central Time)
U.S.
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