In a week shortened by the 4th of July holiday, we saw plenty of fireworks.
After the miserable close last Friday following the USDA reports, this week corn gained back over half of what it lost that day.
September corn gained 2 today, and closed at $4.38 3/4, up 14 for the week.
December corn gained 1 today, and added 10 3/4 for the week, closing at $4.42 1/4.
Weekly export sales were released today, near the bottom end of the range of expectations. Continuing tension in the Mideast is weighing on the market. The main concern is weather conditions for the balance of the crop year and the resulting total production.
Almost the exact opposite for soybeans. Both the August and the November lost 28 1/2 this week after gaining almost 11 last Friday.
August beans finished the day down 13 3/4 at $8.76 and November lost 14 1/4 today, ending at $894 1/2.
Part of today’s action was a reversal of sorts from Wednesday when soybeans were up 10 cents. The rally Wednesday was attributed to talk that the Chinese “might” buy more soybeans and pork from the U.S. as well newly scheduled face to face talks between the negotiators. However, reality came back into the picture today as people realize we are still a long ways from any signed documents. This, on top of the Chinese statement that any deal would have to include the removal or all tariffs. There is also starting to be some concern about the actual number of soybean acres that will be planted. Is it really 80 million acres? Or is that the low end of the range of expectations and we’ll see a higher number in the August report?
There is a USDA report slated for next Thursday the 11th. Typically, we don’t expect a lot of changes in the July report, but this has not been a typical year, so it might be good to put some thought into your marketing plans before that report:
- Do you need to finish up some old crop sales?
- Do you want to get a little more new crop sold?
- Do you need to put an offer in ahead of the report