Corn down 2
Beans down 1
Corn is trading lower today and rumors are circulating that China will purchase up to 5 million metric tons of U.S. corn. Good weather is expected across most of the corn belt this week. Traders will more than likely be reluctant to press the short side of the market at this point until more is known about the crop but the outlook on the market remains bearish. There appears to be a lot of old crop corn inventory out there that farmers are holding on to and selling is expected to pick up if there are problems during pollination. Overall, the crop appears to be in good shape.
Friday, the soybean market closed higher with gains extended for the 4th consecutive week. News continues that China will accelerate their buying of U.S. beans, but they have not bought any more than what was originally factored into the U.S. balance sheet. Beans are trading lower this morning as drier areas received decent rains over the weekend. Crop condition rating is expected to be unchanged.
Next week’s USDA reports on acreage and stocks in all positions is being anticipated as well and may keep the markets from moving too much either way. These will be released on Tuesday, June 30th.