Morning Comments, August 3, 2020

Shutterstock 526530454 Soybean Fields

Opening calls:

Corn: Steady to 1 Higher

Beans: 4 to 5 Higher

Corn traded steady to a little better overnight. Bears have had the upper hand recently with weather wars, as cooler temps and rains have improved crop conditions in most of the U.S. The over/under a few weeks ago was around 175 bu./acre, but now it seems to be at the 180 level. It’s easy to think that we’ll easily be below that, when some of us look out our back door, but the rest of the country hasn’t had quite the same struggles we have in parts of Iowa. Looking forward, demand remains in question but some recent purchases were able to lend support. The trade expects a 1% increase in crop condition this afternoon. 

Beans went through a small break in purchases from China, but recent buying and shrinking supply could help prices work higher. Last week’s prices fell after the improved condition rating, but the trade was expecting a flat/decline in ratings last week. This week, the market is expecting we get slightly better by about 1%. We continue to encourage making some small sales for New Crop, if/when November futures spike to or above $9.

On a side note, there are starting to be quite a few stories about railroad performance and logistical issues at the ports for grain leaving the country. We’ll keep an eye on this and see how much more trickles back to the Midwest.