Corn down 2-3
Beans up 1
Yesterday, the May corn contract closed 4 ½ cents lower, settling at $3.46 ¾, and the December contract was 4 ¼ cents lower closing at $3.75 ½. Ample supplies, large corn crops getting harvested in Brazil and Argentina (combined could produce 30 MMT over last year), and talks that Brazil is increasing their ethanol production are weighing heavily on the corn market. Wheat has lost over 34 cents in the last ten days, and that too is dragging corn lower. The May soybean contract closed 6 ¾ cents lower settling at $8.55 ¼, and the November contract was 6 ¾ cents lower closing at $8.89 ½. Beans have fallen about 25 cents this week, and the dollar continues to trade higher making U.S. beans less competitive in the global market. The weakness in corn and wheat market are also dragging down beans and no signs of a deal with China it’s tough to find some reason for beans to move higher. Beans are trading slightly higher due to correcting some oversold conditions this morning but won’t look for any major rallies soon.
Yesterday, we rolled both corn and soybean bids from the May futures to the July futures. Please keep this in mind when comparing previous days to yesterday, as it may appear that all we’ve done is widen/weaken the basis, so, also check the cash price. In the process, the basis actually improved a little for the farmer across the board in both commodities. The corn market is still inverted (corn is worth more now that it is this summer) and the soybean market is still in a nice carry that continues to plug along (meaning bean values are better now, if making sales for this summer).