Morning Comments, August 07, 2020

Red Machinery Harvest

Opening calls:
Corn: Steady to lower
Beans: Steady to lower 

Dry conditions continue to plague parts of western Iowa, possibly capping crop condition scores for the state. Much of the revised drought monitor and weather premium hasn't been added in as the forecast is favorable. Export sales look to come in close to the yearly expectation so long as the current pace holds. Iowa weather and Chinese headlines are the key factors here. 

Beans are trading slightly lower after attempting to make a rally early in the overnight session. There's still some weather risk out there but early forecasts show favorable conditions. China will be buyers again soon. Once prices find some support, China should look to the U.S. as we are the most competitive right now with the dollar weakening and supplies running short in South America.