Corn steady to 1 lower
Beans steady to 1 higher
In a continuation of the pattern we saw last week, corn was slightly lower and soybeans slightly higher overnight.
The corn market closed slightly lower Friday. With the weather in the Midwest expected to be nearly ideal through the middle of August with most of the corn belt facing no major drought concerns there wasn’t much news to cause a lot of buying. This afternoon we will see the release of the weekly USDA crop progress and crop condition ratings. The conditions are expected to come in steady or potentially a bit better than the week before. Corn is trading steady this morning. Most of the corn is pollinated and farmers are looking to move the rest of old crop inventory to make room for new crop before harvest.
The soybean market also closed lower on Friday. Again, the weather is playing a large part with the forecasts looking favorable for August. The markets have been well supported by Chinese demand. U.S. soybean condition ratings remain high and some expect the good/excellent category ratings to increase some. The soybean market is trading higher this morning. The U.S. dollar is lower this morning and that is likely part of the reason why buying has been happening and the hope that the Chinese buying will continue to support the price of soybeans.
Other items we are keeping an eye on this week that will impact values:
- Weather: reality vs. forecasts
- Including flooding in China
- Crop conditions: many analysts are now “expecting” a corn yield greater than USDA’s 178.5 and soybeans to be around 50 bu./acre, pretty much in line with the USDA’s estimate of 49.8
- Export sales – we are already hearing of soybean sales to Mexico and China for 2020/21 this morning
- Export inspections/actual loadings last week
- Ethanol usage of corn last week
- Anything/everything geopolitical in nature:
- U.S./China relations
- China/India relations
- Mideast tensions (civil war in Libya, etc..)
- Anything/everything Covid-19 related
- Surging numbers of cases/deaths in many states
- Impact on gasoline/ethanol demand
- Interest rates and impacts on currencies
As always, if you are looking to move any old crop or make any sales for new crop, please contact your local Grain Marketing Advisor or Customer Service Specialist. Let us know if there is an offer we can watch for you.