Morning Comments June 14, 2018
Thursday, June 14, 2018, 8:06 AM
Submitted by: Landus Cooperative
Corn down 5 to 6 cents
Soybeans down 3 to 4 cents
July corn closed down 1 ½ cent on Wednesday at $3.76. Trade tensions affecting the soybean market are the primary reason we are seeing the downward pressure on corn prices. U.S. ethanol production was higher last week at 310 million gallons/week, 5.1% higher year-over-year production. This could be an indication USDA’s corn used for ethanol estimate is on the low side, which could prove to be promising for the corn market as we are looking at a crop with high yield potential.
Soybeans fell steadily throughout the day yesterday with July ending up down 18 cents at $9.36. Apprehensions about trade developments with China have caused significant fund liquidation. It has become a waiting game while we try to figure out what tariffs will come out of the talks from both sides.