Weekly Market Summary July 6, 2018
Friday, July 6, 2018, 2:07 PM
Submitted by: Landus Cooperative
Somewhat interesting trade this week, though not necessarily at prices we are excited about. Monday’s close seemed to set the tone that we were in for a rough week for both corn and beans, with corn contracts closing down 12 cents and soybeans closing down 10 to 11 cents. We saw some recovery for corn on Tuesday when contracts closed up 6 cents. Beans were down slightly, but this was somewhat cushioned by nearby basis improvements. With the holiday, markets closed early on Tuesday and did not resume trading until Thursday morning. We saw some movement in the corn market throughout the day on Thursday, with contracts being anywhere from up 5 cents to down 3 cents. Corn maintained a fairly neutral position by the close, while beans never could seem to find traction and ended the day with 12 cent losses.
All week, trade has been anticipating the implementation of the $34 billion in tariffs between the U.S. and China. However, it is likely the buildup and consequential selling off the last couple of weeks has already priced this development into the market. It is more likely that short covering ahead of the weekend and the large export numbers this week overshadowed the tariff news. FAS data put old crop soybean bookings up 56.7% from last week and 79.8% ahead of this time last year. All in all, both corn and soybeans finished strong today with corn contracts 8 cents in the green and soybeans up an impressive 38 cents. Compared to last Friday’s close, corn only managed to gain ¼ cent to 2 cents for the week, but beans came out 14 to 14 ½ cents better on the board. We could see prices get back up to levels where producers will want to be paying attention if the momentum continues. Make sure to plan some time to visit with your GMA about your price points for old and new crop and see about putting in offers.
Enjoy the break in the heat and the rain this weekend!