Morning Comments, July 31, 2020

NH3 Fall Sunset

Opening Calls:

Corn: steady to 1 higher

Beans: 3 to 4 higher

Good Morning

Yesterday, the corn market closed slightly higher with the Sept at $3.15 3/4, up 1/4. The USDA announced the single largest one day sale to China on record at 1.937 million metric tons (about 76 million bushels). This was also the 3rd largest export sale of corn ever. The last “big” sale was to the USSR in 1991 at 3.7 mmt (or about 145 million bushels). However, this sale failed to move the market much as the sale had been predicted for several weeks. Corn is trading slightly higher this morning as it’s the last trading day of the month. Improving weather throughout the Midwest with some areas predicted to have record-setting yields, a 3 billion-plus bushel carryout and COVID impacts will likely limit the potential for rallies.

The soybean market closed 3 higher yesterday with November $8.88 1/4. The market is trading higher this morning in hopes of more Chinese soybean sales. This week saw large new crop purchases at 3.344 million metric tons (about 122 million bushels), bringing 20/21 new crop total sales to 505 million bushels vs 123 million bushels at this time last year. Improved weather and crop conditions ratings will be the focus of the trade potentially limiting rallies.

With harvest fast approaching, have you completed your New Crop marketing plan? Contact your local grain marketing advisor to discuss the grain marketing alternatives that best fit your operation today.