Highlights
The Producer Price Index for July was reported yesterday +0.1%, better than the expected +0.2%. As a result, the dollar was sharply weaker because interest rates are more likely to be reduced sooner rather than later. A lower dollar makes US products cheaper for foreign buyers. Usually, crude oil is higher when the dollar is weaker, but it is not working that way this week. CBOT commodities used to be supported by a sharply weaker dollar, but not in 2024 and yesterday was no exception.
Yesterday was the fourth consecutive business day with a major export corn and beans sales as the USDA announced the sale of:
132,000 mts of new crop soybeans to China
137,160 mts of new crop corn to Mexico
Egypt bought 280,000 mts of optional origin wheat on Monday, a slow start for their 3.8 million mts tender.