Grain markets are a bit higher this morning as trade continues to weigh the impact of this weekend’s hot weather that will be seen across much of the Corn Belt. However, the more than expected rainfall that we have seen fall on much of our growing region has definitely dampened the fear of this weekend’s heat wave. Currently, corn is up 3, soybeans are up 10, and wheat is up 4. Weekly export sales show corn was the only commodity that exported less than expected. The U.S. exported 333,000 tonnes of corn (estimated 350,000 to 800,000 tonnes). The weekly exports for soybeans come in at 326,300 tonnes (estimated 100,000 to 700,000 tonnes) and the weekly exports for wheat come in at 347,300 tonnes (estimated at 200,000 to 400,000). The drop in corn exports still come in at no surprise as our corn prices remain higher than other countries. We are still hearing that end users in the southern states are importing corn from South America at cheaper rates than they can buy U.S. corn. Moving forward, the next 15-30 days of weather still comes at a critical time as the bulk of pollination will be taking place. Until we get through pollination and see the USDA’s re-survey report that will be released on August 12th, I think the markets will hold on to some risk premium. I think we can expect prices to remain volatile and trade within the range that has already been established so far this month. The weather and some technical indicators will continue to drive prices in the next few weeks to come.
Have a great day!