Our corn market popped higher last night only to run into a little resistance in the early hours of the morning; the rain system that is moving through the northern part of the belt seems to be weighing on prices a bit. While this rain is most definitely needed in those areas, we will see how long the weakness in corn futures lasts as the 6–10- and 8–14-day forecasts continue to show limited precipitation with a return to above normal temperatures for the drought-stricken areas. Fresh maps below.
Meanwhile, soybeans are finding some strength thanks in large part to stronger veg oil markets. The Canola crop in the north (also hampered by drought conditions) is causing production concerns, and that concern is spilling over into other veg oils. On top of that, we need to remember that our carryout on soybeans this year is only 135 million bushels, and there are end users in certain parts of the country becoming very aware of that fact as soybeans are becoming hard to source in pockets of the U.S. This has the front end of the bean market feeling firmer.
Overall, for today our markets are feeling like they want to work higher to price in some additional forecasted weather risk. It just might be more of a mixed bag with the current radar lighting up. Once again, we will want to keep an eye on the maps for price direction.
Corn is steady to 2 cents higher
Soybeans are 10 to 15 cents higher