Corn down 2 to 3
Beans down 5 to 6
Corn is trading a little lower at the break this morning. On Friday, it was easy to tell that the trade didn’t believe the USDA’s acreage number in last week’s report as corn continued to creep higher. We will see the resurveyed acreage number in the August 12th report which is expected to be in the range of 77-80 million acres. This afternoon we will see crop conditions. It is estimated that it will come in a couple points lower with the dryer conditions we saw at the end of last week.
The soybean market followed corn higher on Friday as it reacted to the dryer extended forecast as well. Soybeans traded higher throughout the night, but are 5-6 lower this morning. The long term soybean market is still bearish, however, due to the lack of demand and a large South American crop. All in all, it will take a large drop in the soybean supply to generate a substantial rally.
With the strong new crop basis levels we have been seeing, now would be a good time to think about locking in a basis contract. Contact your Grain Marketing Advisor or your local Landus Cooperative location if you have any questions.