- We have seen a day where premium has been added to ag markets in advance of the forthcoming September crop report scheduled for release on Friday. It seems early US yield results have failed to excite, whether this is reflective of overall US yields remains to be seen and it will likely take another couple of weeks before we truly know. Fund liquidation has doubtless been going on as “risk off” predominates market sentiment.
- Outside markets have been more supportive today giving US markets a breathing space in which to take some recovery. Crude was down $0.80/barrel, US$ was down a touch and US equities were higher with the DOW up 300 points.
- Crop condition is expected to decline 1 or 2 points when data is released later today, and this is a seasonal function rather than a systemic issue. We will update tomorrow when the data is released.