AM Comments 07/18/16
Monday, July 18, 2016, 12:07 PM
Submitted by: Dustin Weiner
Corn and soybean futures are lower to start the week, both commodities made an attempt to trade higher at around 8pm last night, but they also both gave up – especially soybeans – and have been trending lower ever since. The general thought process on weather this morning is that the hot/dry weather won’t stick around long enough to damage crops too severely, and that has prices under pressure. While many feel the top end of corn will get snipped in places due to the heat that is coming, the overall production scenario still tells us there is a big crop out there.
This afternoon’s weekly Crop Progress and Conditions report is expected to show ratings unchanged from last week (U.S. corn was rated 76% good-to-excellent while U.S. soybeans were 71% G/E a week ago today). The longer these strong ratings hang around, the more comfortable the market is assuming a trend-line yield (or higher) for the U.S. this fall.
The outside markets are pretty quiet this morning, even after the wild weekend which involved many things - including an attempted coup in Turkey. The $US and the stock market are called a touch higher while crude oil looks to start off slightly lower. Not a factor for our grains/oilseeds yet this morning.
For today, we will keep an eye on weather but with rains falling across Nebraska, southern Minnesota, Iowa, northern Illinois, northern Indiana and Ohio over the weekend – the heat coming this week could be mitigated a touch in the eye of the trade.
Corn 2 to 3 cents lower
Soybeans 10 to 20 cents lower
Have a great day!
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