Morning Comments, July 08, 2020

Corn silks

Opening calls:

Corn: 2 cents lower

Beans: 4 cents lower 

Grain is trading lower this morning after a lower day yesterday due to rains in the forecast for the corn belt. The trade is mostly centered around the weather as this morning’s weather model has precipitation back to a more normal range on the 8-14 day forecast. Traders are also waiting for the USDA report on Friday. The average trade estimate for Friday’s crop report pegs U.S. corn production at 15.036 bln bu, keeping the yield unchanged at 178.5 bpa. Analysts expect the 2019/20 ending stocks to come in at 2.277 bln bu (2.103 in June) while the 2020/21 ending stocks drop to 2.683 bln bu (3.323 in June). Traders anticipate the report to show U.S. bean production at 4.152 bln bu, slightly increasing yield to 50 bpa. The 2019/20 soybean ending stocks are expected to hold near steady at 584 mln bu (585 in June) while new crop ending stocks are projected to grow to 416 mln bu (395 in June). 

We are in a volatile market space at the moment - offers are working great. Consider sticking some in for old or new crop grains, cash or futures.