A change in weather forecasts mixed with some unanticipated precipitation has drove the markets lower here in the last 24 hours. This morning corn is currently trading 7 cents lower and soybeans are trading 9 cents lower. The extended forecasts now show a quicker return to cooler temperatures across much of the U.S. growing region. The warmer temperatures are now expected to break by early next week as the ridge of high pressure that brings the hotter weather will move back over the Rockies by this weekend. Also, Hurricane Barry’s remnants moved farther west than originally anticipated. The whole southern half of IL sat in the path of the tropical storm’s remnants and collected some much needed precipitation. There is currently a system that started in eastern NE this morning and is making its way across western IA bringing some much needed rain to that region as well. In our area, we are still seeing chances of rain mid-week and there are now chances of showers showing for this weekend.
Another driving force for the market action was yesterday’s weekly crop ratings report. To some surprise the good to excellent ratings did improve a bit with yesterday’s report. Granted, the jump in improvements only increased by 1% for both corn and soybeans on a national level with 58% of corn rated as good to excellent and 54% of beans rated as good to excellent. Here in Wisconsin, corn ratings increased 1% from the week before rounding off at 60% good to excellent and soybeans didn’t change remaining at 64% good to excellent. Ultimately, the currents crop ratings and weather are definitely not ideal but both are moving the right way here in this crucial mid-July time frame. With a greater ease in the weather forecasts we could definitely see further decreases in prices. I would advise producers to call in and discuss the best opportunities to lock in any of their crop at the best levels.
Have a great day!