Morning Comments July 16, 2019

Grain Bins

Opening calls:

Corn 6-8 lower

Beans 9-11 lower

Yesterday afternoon we saw this week’s crop conditions report. For corn the good to excellent rating was up to 58% compared to 55% last week and the silking percentage came in at 17% compared to 8% last week. The corn market is trading lower this morning with profit taking and the unexpected improvement in the good to excellent rating. The trade may be expecting that rating to increase again next week as the extended forecast now calls for more moderate temperatures after the current heat spell passes.

Soybeans are trading lower this morning as well due to an increase in the good to excellent rating and improvement in the weather forecast. The good-to-excellent rating came in at 54% this week compared to 53% last week and the blooming percentage came in at 22% compared to 10% last week. It is estimated that there are about 4 million acres of soybeans that haven’t emerged yet, which would indicate that the USDA would have to lower the soybean yield in the August WASDE report. However, the long term outlook is still bearish for soybeans due to the lack of demand and large South American crop.