Grain markets were mixed through the overnight of trade with corn and soybeans trading higher and wheat trading lower. Currently corn is up 2 cents beans are up 3 cents and wheat is up 3 cents. The rebounds being made by corn and beans remain a bit shaky at this point. The weather forecasts are calling for rains that will cover the bulk of the Midwest through the weekend with the heaviest amounts expected to fall in Iowa and surrounding states. Extended forecasts are showing that decent rains are expected to fall in the Corn Belt in the next 6-10 day time frame then give way for drier days in the 11-15 day time frame. Temperatures are expected to remain above normal through the end of August for the major growing regions of the U.S. Another reason that the rebounds remain on shaky footing is because the demand situation seems to be in shambles for both corn and beans. Total demand for corn fell by 125 million bushels and total demand for beans fell by 104 million bushels. I believe the fall in demand that was printed in August’s report was the biggest driver in market reaction, especially in the corn market. It would be very beneficial for the markets if the trade disputes were solved sometime in the near future, however, with the way things are going now I believe it is highly unlikely we will see a deal get done anytime soon. Markets will definitely keep an ear open regarding that situation and any beneficial news will surely be welcomed. Since the report was released on Monday, the markets haven’t shown a whole lot of life and I think the markets are susceptible to even further declines. New buying has really been absent since the report and the markets are deeply oversold. I think the markets may have to run out of selling before any buying occurs which makes prices susceptible to additional declines. Going forward, I would advise producers to actively watch the markets and any decent bump in prices should be taken advantage of. The corn market is expected to be choppy going into harvest and once corn finds its fair values they should trade within a range. Taking advantage of any little surges in the market will prove beneficial going forward!
Have a great day!