Sharply weaker markets out of the gates today with corn down 10 and soybeans down 15.
The forecast has rain forecast by the US model that will cover parts of Central Iowa and Illinois later this week. Amounts are light, but there will be several pop-up storms in the next 14 days. The back end of the models has a lot more rain in them than they did even on Friday. There are rain systems on the 31st, August 4th and August 8th. The forecast is much more active with precip than we have seen for a long while. The heat beaks later this week, but still warms up again at day 10 on the models. The Ridge looks to return out West.
Crop ratings will likely drop this afternoon with the recent heat and dryness we have seen. Talk that the crop is getting smaller not bigger may be premature, but regardless the markets are trending lower. The end of July and August are usually that quiet part of the marketing season which could explain some of the recent selloff.
This morning a Chinese Vice Foreign Minister said during talks with U.S. Deputy Secretary of State Wendy Sherman that the two countries’ relationship “is now in a stalemate and faces serious difficulties,” according to an English-language press release from China’s Ministry of Foreign Affairs. China is said to have presented the US a list of demands including wrongdoings that must stop and individual cases that China has concern with. US Secretary of State Sherman had a closed-door meeting with Chinese diplomats today. While this may just be noise in the markets, it does give traders more reasons to go short the market and until we get the true fundamentals of crop size figured out, it will be trade news.
Have a Safe Day!