Markets continue to trade sideways as we finish out the month. There has been a fair amount of producer selling the last few days locally and across the country as producers price DP bushels or storage bushels before the September 1 storage charges kick in. This has resulted in elevators gaining ownership and making sales to end users. Basis levels in several areas have pulled back (widened) due to the selling as their needs ahead of new crop get filled.
Weekly US corn export sales for 2019/20 came in at 4.68 MMT which was the lowest new crop sales for this timeframe since 2005.
Forecasts for the 10-15 day range are slightly below normal but there is no fear of an early frost at this point. In my opinion even if we do get an early frost, it will likely only result in a day or two of higher trade and then traders will sit back and wait for the final production numbers to come in January. No one should expect the markets to react to an early frost the way they did to the wet spring weather. Demand has disappeared and until this comes back the markets will have limited upside.
Reminder that the markets will be closed on Monday for Labor Day.
Have a Safe Labor Day Weekend!