Corn: 2 to 4 higher
Beans: 9 to 12 higher
The corn market closed significantly stronger last week with December futures finishing 18 3/4 cents higher. Funds were estimated to reduce their short position by 49,000 contracts, putting them in a net short position of around 61,500 contracts. The U.S. corn yield continues to fall as the corn belt stays dry. It is expected that the crop conditions rating will fall another 2 to 3% in this afternoon’s report. The trade continues to weigh what the final yield, production and ending stocks will be with the damage that has been done from the derecho and the continued drought/dryness. Export demand continues to be positive as well. Ultimately, it will take combine data at the end of harvest to have a better picture of crop size.
Soybeans finished strong last week as well, with both November and January futures finishing 45 cents higher. The soybean market closed sharply higher Friday, rising to 8-month highs on dry conditions in both Iowa and Illinois. Early in the week, the weather forecast had called for widespread rains across the dry areas, however, those rains haven’t quite developed yet, and that is one item pushing the market higher overnight and into this morning. Traders continue to factor in another drop in the crop condition rating this afternoon of another 2-3%. The dry weather in August has trimmed the yield prospects for the soybean crop and could bring the yield down to sub-50 bu./acre. We have also seen continued firm soybean demand from China which has brought more buyers to the bean market as well.
Keep in mind that the Landus 2020 Crop Tour results will be discussed during 2 webinars on Wednesday. Please register if you’d like to attend on Sept. 2nd.