Morning Comments August 8, 2019

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Opening Calls:

Corn: 2 to 3 higher

Beans 4 to 5 higher

Corn and beans managed to close higher yesterday with dryer weather forecasted in a time when late planted corn will be pollinating, which has the potential to trim a little more yield. With the USDA report out Monday at 11AM, it will be interesting to see how traders position themselves. With the report expected to be friendly, will traders be buying corn before the report? The next 30 days will be a critical time for soybean development so the trade will be focused on weather for beans. Thoughts are South America will increase production 2-4% as the ratio between the dollar and the Brazilian real is favorable to do so. Combine this with the opinion that not much will happen in the trade negotiation talks between the U.S. and China until after the 2020 election, and it makes sense to the Brazilian farmer to increase production. There is more chatter starting to happen on the demand side of the market, with the concern that lack of demand will offset a shortage in production. Your local GMA can help you minimize your risk and identify opportunities with your marketing during this time.

Reminder that price later contracts must be priced or rolled by August 16th at 1pm. Call your GMA for details.