Morning Comments July 10, 2017
Monday, July 10, 2017, 8:07 AM
Submitted by: Landus Cooperative
Corn +6 to +8
Soybeans +19 to +20
We continue to ride the weather market. Last week, September corn futures closed 11 1/2 higher while December futures closed 12 3/4 higher. There was even more positive momentum in the soybean market. August futures finished 54 cents higher for the week and November beans closed 60 3/4 better.
The talk of the trade continues to be weather. With a forecast that has turned increasingly hot and dry, both corn and beans gapped higher during the overnight. The two-week forecast remains drier than normal for the Dakotas, NE, KS, IA and central IL. We’ve heard scattered reports of spotty rain overnight. Anywhere from .4” to 1.5”, but again, pretty spotty.
This afternoons Crop Progress and Conditions report is likely to be bullish with estimates that soybean ratings will decline 1-3%. If we continue to see weather like the forecast suggests, there is a lot of upside potential in this market. However, weather markets are incredibly volatile and can move down just as quickly, or even more quickly than they move up.
Do you have any offers in? Offer contracts are a great way to catch weather rallies at their high points. We had several hit overnight, and have others within striking distance. We continue to believe this is a selling opportunity, especially for Old Crop Corn. If you have any bushels in the elevator on Price Later or storage, now would be a good time to get them priced.