Morning Comments, July 09, 2020

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Opening calls

Corn up 7

Beans up 9

Corn and beans are trading higher on the overnight with spotty rains failing to supply adequate rainfall and missing the I-states (Iowa, Illinois, Indiana). Corn is also finding support from ethanol production as it continues to recover, hitting the highest level since March. Wheat is giving support to corn and beans with disappointing yields in Russia, and dryness causing production issues in Argentina. The bears are looking at weakening gas demand due to COVID, dropping crude prices, and the potential of rains next week. Tomorrow at 11 a.m. the USDA releases its Stocks report, see below for estimates. In these volatile markets, it would be wise to get offers working before the USDA report.