Highlights, Export Inspections, Markets & Rain Days Update 7/6/22
- Wright Team
- Jul 6, 2022
- 2 min read
Highlights
Heatwaves are predicted to sweep through northern China the next two weeks with temperatures exceeding 40 degrees Celsius (103 F) in some regions.
Italy declared a state of emergency for areas surrounding the River Po, which accounts for roughly a third of the country's agricultural production. The area is suffering its worst drought in 70 years.
The US economy may have contracted during the second quarter. With the confirmed contraction of the US economy in the first quarter, that would meet the “rule-of-thumb definition” of a recession with the contraction for two quarters in a row. But deciding when a recession has begun or predicting when it will end is undefined by a set of standards.
To understand the market influence of deliveries on futures contracts, go to:
The estimated rainfall for the 24 hours ending Tuesday morning:
Export Inspections Tracker
Market Data
This morning:
Crude oil is at $100.25, up $0.75
The dollar index is at 106.54, up 0.01
December palm oil is at 3,816 MYR, down 424. The contract high was made April, 29th at 6,384 MYR. Palm oil owns 36% and soybean oil owns 28% world market share.
December cotton is at $92.60, down $0.88 per cw. The contract high was made May, 17th at $133.79 per cwt. Cotton competes with soybeans and corn for acres.
December natural gas is at $5.764, up 0.030. The contract high was made June, 8th at $9.675. Natural gas is the primary cost to manufacture nitrogen fertilizer.
December ULSD is at $3.3140 per gallon, down 0.0549. The contract high was made June, 17th at $4.0719. ULSD stands for Ultra Low Sulfur Diesel.
September Dow Futures is at 30,804, down 132. The lifetime high is 36,832 on January 5th, 2022.
Rain Days Update
The Western Corn Belt has 10 less rain days in the 10 day forecast than yesterday and the Eastern Corn Belt has 6 less rain daysthan yesterday.
The 6 to 10 day forecast updated every day at: https://www.cpc.ncep.noaa.gov/products/predictions/610day/
Explanation of Rain Days
Every day, every place in the world has a ten day weather forecast issued many weather services.
By a "place", we mean a Findlay, Ohio; Arcadia, Minnesota; Atlantic, Iowa; Fullerton, Nebraska; Cordoba, Argentina; Craig, Colorado, Saratov, Russia and ten million localities we have never heard of.
The ten day forecast predicts the high and low temperature for each day as well as whether or not rain is predicted for each of the ten days, likewise cloudy, partly cloudy, sunny, etc.
We look at the ten-day forecast and if we see rain is predicted for 4 of the next 10 days, we record a "4" for that location on the chart for the today. It does not matter whether it is one-hundredth of an inch or 5 inches. We realize about half the days expected to receive rain never get rain that day, but we must be consistent in what we report each day and every day because rain makes grain a few key weeks of the growing season. Of course, we scan the temperatures and the amounts of rain just to see if anything is getting way out of the norm.
Want to read more?
Subscribe to wrightonthemarket.com to keep reading this exclusive post.
