Markets are slightly higher this morning with corn up 3 and soybeans up 14.
The forecast for this morning has a lot less rain in it than has been advertised over the past couple days. The Eastern Belt and the far South see most of the rain in the next 10 days. Rains will be totally absent in Iowa, Minnesota, and the Dakota’s and farther West. This is the wrong time for this to happen and could start to shrink the crop. Heat is the bigger concern as its going to get hot out West. Crops usually see good weather on the outer edges of Domes, and in this case that’s Illinois and East.
Ridges make rallies in the summer markets, and it is a hot one out West. We may not keep all this rally today as there is risk going into a weekend and weather changes for the Sunday trade. The markets have become dangerous with the increased volatility, where you can move corn 40 cents and soybeans a dollar on any given day. We do still have some gaps in corn and soybeans that could be filled on the CBOT.
Weather-related problems with Brazil’s second corn crop have sparked a spate of companies exiting their contracts on washout clauses, causing what some traders described as potentially the biggest wave of export cancellations for the world’s No. 2 supplier in five years. According to grain traders and brokers who spoke to Reuters on condition of anonymity, a lot of the corn earmarked for exports is being redirected to the domestic market as premiums are attractive due to shortfalls after the crop was hit by drought and an ill-timed frost. Brazil has replaced some of these cancellations with Argentina corn as well.
Have a Safe weekend!