Our markets are all weaker this morning as both the November soybeans and the December corn futures contracts are down double digits. Yesterday, the corn market failed to push through resistance on the chart (up at the gap created back after the 4th of July weekend), which appeared to trigger some technical selling. This should somewhat be expected when you realize that corn has rallied more than 50c in the past 2 weeks.
In weather news, some of the longer/extended forecasts are starting to show signs of rain but not until you get a couple weeks out. This may also be what is causing some of the selloff in the overnight session. This of course does not mean that we have broken the drought by any means, at least not short term as the 6-10- and 8-14-day forecasts still appear hot/dry.
There has been a little chatter from unofficial “crop tours” across the Dakotas and Montana. Initial feedback we’ve heard is that way out west the crops are just as nasty as you’d expect when looking at the drought monitor (updated below), but as you go from west to east across the Dakotas they are not as bad as anticipated (though still not great). It will be interesting to take another look at all of this in a week or two, assuming these dry forecasts hold true.
Corn is 12 to 15 cents lower
Soybeans are 20 to 30 cents lower