Markets are slightly higher this morning with corn up 7 and soybeans up 15.
A bearish USDA report and nice rains across IA, IL, WI and OH had the markets on its heels yesterday. We are seeing a slight technical bounce this morning, but with more rain forecasted for the next 7 days, this bounce may be short lived.
Yesterday’s report saw the USDA lower yield from 181.5 to 177.5 bushels per acre. With the recent update in planted acres and the reduction in yield, we are still projected to have a 2023/24 carryout of 2.262 billion bushels. With exports and demand looking bleak through 2024, we could drop yield another 4 bushels per acre and still have stocks north of 2.0 billion.
The models show rain in much of the Midwest over the next 7 days. Heavier rains are in the Southern and Eastern Regions. A large storm developed yesterday over Iowa that ran into Northern Illinois. Those were the best rain totals in Northern Illinois since April. More activity is forecast this week before a ridge sets up around July 18th.
Producers should be looking to get new crop sales on the books with any rallies in the markets. 2.0 plus Billion Bushel Carryout screams $4 corn!
Have a Safe Day!