Our markets are starting off weaker this morning after some impressive weekend rains, both in amounts and coverage starting in the western center of the corn belt and moving eastward (map below). Of course, not everyone was that lucky as the NW belt and Northern Plains needed the rains the most and didn’t see much action out of this one. Looking forward, while we do have another rain chance this week, both the 6–10- and 8–14-day forecasts have precipitation probability expected to be “below normal”. Not ideal, especially for those who missed the rain.
Looking forward to today’s trade, outside of news/changes in Washington DC (in particular to biofuel policies) we will probably be keying off of weather forecasts for direction. Figuring out not only how much weather price risk needs removed (thanks to the weekend rain coverage), but by the end of day, will any risk premium need added back in thanks to the dry forecasts? Also remember that our weekly crop progress/conditions report will be out later this afternoon; these good to excellent ratings tend to feel more and more important every week as the calendar rolls forward.
Corn is 15 to 20 cents lower
Soybeans are 25 to 30 cents lower