AM Comments 08/01/16
Monday, August 1, 2016, 12:08 PM
Submitted by: Dustin Weiner
Our markets are lower this morning and once again it is all about the weather. It didn’t get quite as hot as expected over the weekend and while some of the forecasted temps may have backed off since Friday’s look at it – it is still expected to warm up this week. There is legitimate concern over the temps – both daytime and nighttime - but nice rains remain in the forecast which has many in the trade confused about what that means to production. Also, the rest of the extended forecasts for this month look similar: warm and wet. I get the feeling we may not know what effect this weather pattern will truly have on yields across the corn belt until we get into the fields this fall.
This afternoon we will get another look at US crop ratings, which are expected to remain at historically high levels (76% G/E on corn and 71% G/E on soybeans). Other than that, this market is looking to trade off of weather and unless updated forecasts bring a hotter/drier trend with them – there’s a good chance we spend the day trading lower – giving back the pre-weekend gains we saw Friday.
Corn 2 to 4 cents lower
Soybeans 15 to 20 cents lower
Have a great day!
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