Morning Comments, July 06, 2020

Sustainability Soybean Examination

Opening Calls:

Corn up 3 to 4

Beans up 12 to 14 

Overnight, grain markets were higher, due to extended forecasts turning a little hotter and drier. Soybeans surged to levels not seen since early March and closing a gap left in the chart. Both the August and the November futures are now above $9. While corn futures were up, they did not surpass the highs set last Thursday and are generally about 5 cents below that high. 

There is a WASDE report due on Friday. It will be interesting to see what the USDA does with the supply and demand estimates for U.S. corn and soybeans, both old crop and new crop. Early estimates are pointing to a reduction of around 500 million bushels for the 2020/21 Ending Stocks for corn, and taking us down to around 2.8 billion at the end of next summer. Deviations from that number and any changes to the weather forecast will continue to impact corn and soybean values.