Morning Comments July 3, 2018
Tuesday, July 3, 2018, 8:07 AM
Submitted by: Landus Cooperative
Grain managed to close in the green overnight after sharp losses yesterday. Corn is up 4-5 cents and beans are up ½ to 1 cent.
Concerns over Russian corn and wheat production are supporting grains which is helping support corn prices this morning, while soybeans are reluctant to follow.
Soybeans remain the weaker link as trade tariffs with China are expected to come into effect on Friday. The agriculture industry is pleading with the White House for a last-ditch effort of negotiations, but such negotiations would have to involve both Presidents and seems very unlikely at this point.
The weather outlook shows heat returning to the central U.S. with highs in the mid 90’s into the July 4th holiday. This weekend will see more seasonal temperatures across the Midwest.
Yesterday afternoon's crop conditions report left corn conditions down 1% Good/Excellent (G/E) at 76%, last year and soybeans down 2% in that category at 71%.
Demand is excellent for both corn and beans – we’re exporting more grain than we have in a long time. Additionally, grain processing in corn and beans is well ahead of last year’s pace. Prices just can’t break through the trade and weather bubble that’s tamping down any rally. It’s going to have to take a production problem to get a kick out of this market.
Low prices cure low prices.
The board closes at 12:05 pm today and reopens Thursday, July 5th at 8:30 am.
Thank you for your business, and have a safe 4th of July!!