Morning Comments, July 14, 2020

Figure 2 Japanese beetles clipping silks

Opening Calls:

Corn up 1 to 2

Beans up 1 to 2

Corn and soybeans made a mild recovery overnight with lower crop ratings and U.S. Equities trading higher. Putting pressure on grains from pushing higher is a wetter/cooler forecast. California is shutting back down due to a massive spike in COVID. Crude oil and gasoline are trading lower with these continued concerns. South American corn is cheaper than the U.S. Gulf during the 4th quarter, driving sales to Brazil and Argentina. In the end, the weather and yield prospects will be the drivers of price this month.

We’re in this weird time of the year where we’d all like to see rain and great weather, but also hoping for higher prices. These two items rarely go together. We’d encourage sales, especially old crop sales if/when we see any spikes, as time is starting to run out for a long term weather rally.

Corn Crop Condition Rating (% rated good/excellent)

National: 69% vs. 71% last week and 58% last year 

Iowa: 83% vs. 85% last week 

Illinois: 61% vs. 61% last week 

Nebraska: 70% vs. 74% last week 

Minnesota: 85% vs. 85% last week 

Indiana: 59% vs. 60% last week

Soybean Crop Condition Rating (% rated good/excellent)

National: 68% vs. 71% last week and 54% last year 

Iowa: 83% vs. 84% last week 

Illinois: 59% vs. 63% last week 

Minnesota: 83% vs. 83% last week 

North Dakota: 67% vs. 69% last week 

Indiana: 60% vs. 62% last week