Afternoon Comments June 11, 2018
Monday, June 11, 2018, 3:06 PM
Submitted by: Landus Cooperative
Corn down 10c
Soybeans down 15c
It was a tough day for the markets as corn and soybeans were beat down for the entirety of the trading session. Nearby corn futures closed 10 ½ cents lower while new crop settled down 9 ¾ today as export inspections were depressed and most of the Midwest has enjoyed adequate rain coverage. Ahead of the WASDE report to be released tomorrow, the trade is expecting a slight reduction in new crop carryout but not enough to spark any bullish interest. We continue to await fresh news regarding the ongoing trade negotiations between the U.S. and our allies that could send markets upward. Otherwise, the only favorable news is that USDA continues to lower South American corn production estimates as they struggle with weather conditions and plant more soybeans.
It wasn’t any better in the bean pit today. July soybean futures closed down 15 ¾ with new crop even weaker closing down 16 cents. Minimal export demand, great planting progress and excellent crop conditions have reinforced the idea that there will be plenty of beans come harvest. Additionally, lack of progress on trade talks with China has made the market nervous about the U.S. soybean export program. Finally, private estimates have concluded that in tomorrow’s WASDE report, new crop soybean carryout will increase. Thus, fundamentals are suggesting that we may have yet to see the lows in the soybean market.