Corn is down 3 and soybeans are up 3 this morning.
The 10-day forecast has some chances for rain in the coming week. Rain chances start around August 8th. The 7 day is where most of this activity happens and then there isn’t much more to the end of the models this morning. The EU has Northern Illinois getting pretty good amounts, while the GFS has very little and most of the rain falling in Wisconsin. Iowa will see spotty rains over the weekend. The high-pressure Ridge builds moving East pushing moisture up into the Northern Midwest. The Ridge softens on about August 15th and slips South and West.
There is an article by Reuters today about China and commodity prices. China is trying to lower commodity prices by restricting credit, discouraging buying and tightening regulation. (Reuters)
China’s cabinet called the soaring prices “unreasonable” at a May 19 meeting, saying it would strengthen its management of commodity supply. It called for a crackdown on “malicious trading” and urged coal producers to raise output. Beijing’s chief planning agency the National Development and Reform Commission (NDRC) followed up with two separate probes into the coal and iron ore markets, while China’s secretive strategic stockpiler, the National Food and Strategic Reserves Administration, announced rare sales of key metals aimed at plugging supply gaps and cooling prices. (Reuters)
Yesterday StoneX (private firm) estimated the 2021 corn crop at 176.9 bpa and 50.0 bpa in beans. These yields are a little lower than what many in the trade thought Stone would come out with. They don’t think the crop is getting bigger at this point, but the USDA may have something to say about that next Thursday.
We will continue to see a two-side trade today for corn, beans and wheat. We may go on this way for a while with the USDA coming out with a report next Thursday.
Have a Safe Day!