AM Comments 06/20/14
Friday, June 20, 2014, 8:06 AM
Submitted by: Dustin Weiner
The corn and soybean markets started higher last night but are now trying to ease off a bit, trading in the red after two days in a row of nice gains. Some of the recovery in prices these lasts couple days can be credited to wet conditions in the NW corn belt – however the rains for next week look to move south of those areas. Areas where corn should be pollinating next week (the Delta, gulf and southern belt states) should benefit greatly from this southern shift in precip. At the bottom of these comments are the NWS weather outlooks for July – the thing to notice? A lack of extreme (crop threatening) heat…
You may have heard some of the talk yesterday about China – rumors are everywhere that China’s corn stocks could be much higher than the USDA showed (actually most are thinking that they are at a record high). With what looks to be like another record corn harvest coming at them as well – many are starting to wonder what they’ll do with the surplus corn they could be sitting on. Some are talking about China exporting corn (doubtful from what I hear). Overall this story in general is not friendly to corn prices going forward.
With today being a Friday in June, you never really know for sure how the day will end as traders attempt to remove risk from their positions before the weekend comes (lately that has caused late Friday rallies). There are some who are expecting condition ratings to drop on Monday afternoon’s report due to the saturated soils in the NW which could bring some late buying / short covering before the close.
Corn 2 to 3 cents lower
Soybeans 8 to 12 cents lower
Have a great day!