Corn and soybeans opened very strong last night, but despite its initial nickel plus gain prices have since filled those gaps. Corn and beans are currently trading lower this morning. Corn is down 8 cents and soybeans are down 10 cents. The hot and dry outlook for the next 10 days still remains in the forecast. There are some chances for rain in MN and here in WI mid-week, but the majority of the Corn Belt is expected to remain dry. Temperatures are expected to push 100 degrees across much of the U.S. growing region. The hot weather lingers at a time that isn’t so welcome for our crops and certainly adds some risk premium to the markets. The weekly crop progress report will be released after the close today and it is expected that there will be a decline in good to excellent ratings for corn and soybeans. This week, markets will be focusing on a break in the weather and looking for more precipitation along with keeping an eye on the exact path of Tropical Storm Barry’s remnants. I think if we don’t see more normal temperatures and added moisture more risk premium will be added to the markets here in the short-run.
Have a great day!