Morning Comments June 30, 2020

Corn closeup

Opening Calls:

Corn: 3 to 4 better

Beans: 4 to 5 better

This week corn good/excellent rating came in nationally at 73% compared to 72% last week and 56% this time last year. Iowa is leading the corn belt with 85% good/excellent as well. The corn market closed higher yesterday, supported by end of the month and end of the quarter short covering. Corn exports last week were strong at 48.6 million bushels which was towards the upper end of market expectations of 39.4-51.2 million bushels. Since late March, corn has averaged 45.8 million bushels per week, which is ahead of last year’s 37.5 million bushels per week for the same period. However, there is still plenty of corn to chew through with the loss of ethanol demand and what will be a big world corn production as well.

Soybeans followed the corn and wheat markets higher yesterday. Export inspections were nothing special at 11.9 million bushels and there were no new Chinese sales announced. With the trade expectation that soybean planted acreage will be increased and the funds already long soybeans, there wasn’t much incentive to aggressively buy beans. Beans came in at 71% good/excellent compared to 54% last year at this time. Iowa, again, leads the way with 83% good/excellent despite dropping a percentage from last week’s 84% good/excellent.

There is also starting to be some concern about upcoming weather forecast calling for hot and dry conditions after the next rain event moves through tonight and tomorrow. If these hotter and drier conditions continue through pollination, that will be more important than whatever the USDA says today in their quarterly stocks and acreage reports due out at 11am. Call your local GMA this morning if you would like to have offers in ahead of the report.