Corn Down 5 to 6
Beans Down 9 to 10
Yesterday, the July corn contract closed 10 ½ cents lower, settling at $4.14 ¾, and the December contract was 10 ½ cents lower closing at $4.33 ½. Corn has fallen off 20 cents from the highs; this is a good example of sticking with your marketing plan and not getting too bulled up. Informa pegged that the US planted corn acres are at 84.9 million acres down 7.9 million acres. Ethanol production fell last week due to low margins from higher-priced corn and plunging crude prices, fell below $52 a barrel. Yesterday, was the deadline for the 5% tariff on Mexican goods in response to immigration issues, so far corn is not on Mexico’s list of retaliatory products.
The July soybean contract closed 12 cents lower settling at $8.69 ¾, and the November contract was 10 ½ cents lower closing at $8.97 ¼. The recent drying trend has trade believing that farmers will switch to beans instead of mudding in corn or taking prevent plant. Informa pegged soybean acres at 85 million acres up 400K acres from last estimates and raised yield estimates.
Additional news from Summit Commodity:
“The USDA did confirm yesterday afternoon that those acres that enroll in the Prevent Plant Program will NOT be eligible for Trade Assistance Payments (MFP). There could be additional assistance for Prevent Plant acres, but that will have to come from the Disaster Assist Bill that passed Monday, but there is a question about whether those PP acres would need to be in a designated disaster area?”