Markets look to continue the weekly trend of lower trade. Corn is down 2 while soybeans and wheat are down 4 and 5 respectively.
Next Wednesday’s USDA report will be the main focus for traders to begin next week and early indications are that the market could head lower into and after that report. Private estimates for corn have been coming in at a yield of 180 bpa + while soybeans have been coming in at 51 bpa +. The USDA’s July estimate had corn at 178.5 and soybeans at 49.8. Ideal weather over the course of the growing season and forecasts for more of the same down the stretch will continue to push yields higher.
Traders are also taking a risk off approach with political tensions on the rise. Late Thursday President Trump signed an executive order prohibiting US residents from doing business with Chinese companies WeChat and Tik Tok. It was the latest in a series of events that has led to rising tensions between the two nations. Delegates from the two economic superpowers are scheduled to sit down on August 15th to discuss the Chinese progress in fulfilling the agreed upon Phase 1 trade deal.
Producers should be locking in sales for corn they have to move this fall. Space is going to become tight everywhere which will be reflected in basis widening.
Have a Safe Day!