Markets have made a bit of a rebound during the overnight trading session. Corn and soybeans both closed at 5 cents higher. Currently, corn is trading 3 cents higher and soybeans are trading unchanged. Weather maps continue to be watched very closely to help determine the fate of this year’s crop. The Midwest is set to have a substantial heat wave that will remain until Sunday of this weekend. There are some areas of concern especially on the Iowa, Missouri border. The markets will definitely try and gauge the damage that will be done to those areas in the next couple of days. However, with the shift in weather and more rain expected across much of the Corn Belt, the hot weather has become less dire and we have seen the markets take out some risk premium that we saw last week. Anticipation is beginning to build around the release of the re-survey data that will be available in August. With anxiety still high over this year’s supply potential, I expect that we will continue to see volatile markets, but I expect the markets to trade within a range, not moving too far one way or the other. Until traders have a better handle on where supply will be with August’s USDA report, I believe the weather will continue to drive the markets here in the short-run. I would advise producers to continue to take advantage of the great markets we have seen and consider contracting any old or new crop in the next weeks to come. With the way this year has gone, it isn’t safe to say how the August report will go. I wouldn’t want any producers to miss locking in their crops at good levels if the report comes out estimating ample supply.
Have a great day!