Corn 2 to 4 lower
Beans steady to down 2
Grains starting the day off lower today. The recent up in the markets has been tied to fund short covering. The trade will be watching to see if they continue to cover or if the weakness this morning is a sign that they are done. FC Stone has come out with their latest yield estimate at 169.3 vs. their previous estimate of 168.4. This could be contributing to this morning’s weakness.
Going forward, the trade will be focused on determining the size of this crop along with any weather delays, the size of the South American crop, and what the demand story will be given the trade war with China and poor ethanol margins.
Given the volatility in the market, the uncertainty of harvest progress due to poor weather, and the ongoing demand issues, take this time to talk with you GMA to understand contract options available to help your operation manage risk going forward.