Demand Factors Helpful in Grains

CHICAGO - Aug 1/06 - SNS -- International agriculture commodity markets remain relatively active, with exporters working on Iraq's tender for 150,000 metric tons (MT) of wheat as well as ongoing activity in the Pacific Rim.

This year's winter wheat harvest continues to advance in the United States. Yesterday, the USDA said it is now 91% compared to 86% last week and 88% last year. Spring wheat harvest progress as of July 30th stood at 22% compared to 7% last year.

North Dakota harvest has reached 21% from 2% normal for this time of the year, as the heat pushed maturity sharply ahead of normal. As a result, yield potential seems to have fallen off just as quickly. Subsoil moisture in Kansas is rated 36% very short and 45% short, and this could become a factor down the road.

The USDA also noted U.S. corn is rated 56% good/excellent compared to 59% last week and 53% last year. The percentage of the crop rated poor/very poor stood at 18% compared to 15% last week and 20% last year. The 16 year average for this time of year is 11%.

Subscribers can read the full text of the article by Clicking here