Corn: Mixed to 1 higher
Beans: Steady to 1 higher
Bulls and bears are in a classic argument of supply vs. demand.
Bulls are looking at a weakening U.S. dollar to allow for continued Chinese buying in corn and beans, which should help the markets hold steady or work higher. South American bean stocks are becoming tight which should also make U.S beans more attractive to China for the next few months. Based on the current export pace on beans and corn it looks like exports will meet or possibly exceed USDA export numbers. Finally, while the weather overall is non-threatening, there are dry pockets that may keep a lid on the yield.
Bears are quick to come back with corn yield having the potential of 180+ bu. with a 2.5 billion carryout, the fact that U.S. corn out of the gulf is the most expensive in the world right now, ethanol demand for corn has leveled off and may not meet USDA projections.
On beans, bears are looking at yields potentially in the 50+ bu. range, rising tensions between the U.S. and China, and a weather forecast that includes rains.
With all of this leading to volatility in the markets, make sure to reach out to your local GMA and discuss our various marketing contracts that you can use on both old and new crop sales.