Good morning,
Markets are lower to start the month of July with corn down 5 and soybeans down 2.
We are seeing some follow through selling after Fridays WASDE report. In case you missed it the report had corn acreage at 91.475 million vs pre-report estimates of 90.353 million. We had soybean acreage at 86.1 vs estimates at 86.75 million acres. Stocks were neutral/bearish as corn stocks came in roughly 120 million bushels above estimates at 4.99 billion bushels and soybeans were basically right in line at 970 million vs estimates at 962 million. These numbers were bearish corn and neutral soybeans.
Now that the USDA has settled the acreage issue, the trade will focus on weather and try to define the yield potential. Yield is in the hands of mother nature and the weather over the next couple of months with the next few weeks being some of the most critical as we get closer to pollination. Current weather models are wetter and cooler which should be favorable.
While prices may not be where we want them, things could get worse by the time we get to harvest. I would advise producers to get some new crop sales on the books as the markets historically trend lower once we hit July. (see attached graph with the last ten years)
Have a Safe Day!
Garry Gard
920-348-6844
