Morning Comments July 28, 2020

Corn closeup

Opening Calls

Corn: 3 to 4 lower

Soybeans: 9 to 10 lower 

Yesterday afternoon the USDA weekly crop progress and crop condition rating reports showed the following: 

Corn:

% Crop Condition Rating (% rated good/excellent)

National: 72% vs. 69% last week and 58% last year 

Iowa: 77% vs. 80% last week

Soybeans:

Crop Condition Rating: (% rated good/excellent)

National: 72% vs. 69% last week and 54% last year 

Iowa: 76% vs. 79% last week

The corn market closed higher yesterday. The trade continues to look at the prospect of improving yields vs record-high corn prices in China. The Chinese corn harvest will begin in the next few weeks, ahead of what looks like a large harvest in the U.S. Yesterday afternoon we saw the crop condition rating for Iowa drop. Corn is trading lower this morning as the trade factors in the improvement in the crop condition rating on a national level. 

The soybean market closed positive yesterday, but the trading range was narrow, with not a lot of new news. The USDA announced a sale of 4.9 mil bu of new crop beans to China, but not a lot of new news there, so the market didn’t show a lot of movement from it. The soybean market is trading lower this morning after the release of the weekly crop conditions report and a positive weather outlook into August.