Morning Comments, June 15, 2020

Farnhamville 2016

Opening calls:

Corn down 1 to 2

Beans down 4 to 6

Markets are starting off the week a little lower from where we left off on Friday. Last week was relatively choppy but when the dust settled, prices were down less than 1% from the start of the week.

Major headlines have been discussing the possible resurgence of coronavirus and its impact on the energy markets, Chinese purchases, lack of weather concerns and the condition of the dollar. The marketing high average top end is June 14. With that in the rearview mirror, it may take a real weather concern to push this market to a more favorable position. Some are arguing it’s been too dry in some key production areas, but the trade has yet to buy into that notion. Another key aspect for corn is that we are nearing a record short position for the speculators. With the quarterly stocks report coming out June 30, the hope is we see a bit of position squaring as we lack news to push the downside much further.

Being June 15, we’re halfway through our push for June deliveries. If you are sitting on any unsold corn or soybeans in your bin(s), we encourage you to contact your local Grain Marketing Advisor or Customer Service Specialist. Give us an idea of what you are looking for, and let’s see if we can help you get there.