Both the corn and soybean markets have ran into some chart resistance this week as our little rally has stalled out right around some key moving averages on the charts. Without a bullish news story to push us through it, the easy path for price action this morning is a bit lower. Also, the weather has finally flipped wetter for most of the northern corn belt which feels bearish, but understanding what that means to production this late in the season is up for debate.
There is a large tropical storm system entering the Gulf of Mexico, likely becoming a named storm soon. You can see in the seven-day QPF map (QPF stands for Quantitative Precipitation Forecast, yes I googled that) shown below that this is expected to dump buckets of rain onto the center gulf and western Louisiana between now and a week from today. What this potentially means from the grain side of things is that the quality of the beans in the field in the Delta could be compromised. It is also interesting to me to see on that QPF map that it looks awfully wet across northern Iowa.
Corn is 2 to 4 cents lower
Soybeans are 4 to 7 cents lower