Grain > Commentary > 8-5-2024

8/5/2024

Aug 05, 2024

On a day where almost every other market space and commodity was red, corn and soybeans were the darlings of the day. Were they large gains? No, but with the macro effect leaning largely negative following some ruthless overnight trade, corn improved 3-4 cents and soybeans found a double-digit bounce. Japan's stock exchange was halted almost immediately on their market open and South Korea followed suit shortly after. There is a huge unwind happening between the Japanese Yen and Japan's low interest rates and the U.S. dollar. The U.S. economy has been overheated for quite a while and a correction is necessary. Export inspections for the week were solid for corn at 1.213 mln tonnes shipped. Soybeans were reported at 261k tonnes. The big downturn in corn prices has made the U.S. competitive globally. Inspection pace for corn is now short 31 million bushels compared to 39 million bushels short last week. Soybean shipment pace continues to slowly lose momentum and is now 16 million bushels ahead of the pace needed versus 23 million bushels ahead the previous week.

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