Corn opened sharply higher overnight and this morning but has sold off and is now up 2 in corn and down 9 in soybeans. Weather may be the major market mover long term, but issues with China are coming to the surface and may cause concern over long term exports.
The United States and a coalition of allies on Monday accused China’s Ministry of State Security of a global cyber hacking campaign, specifically attributing a large Microsoft attack disclosed earlier this year to hackers working on Beijing’s behalf. A U.S. senior administration official told reporters ahead of the announcement. “The United States and our allies and partners are exposing further details of the PRC’s (People’s Republic of China’s) pattern of malicious cyber activities and taking further action to counter it.”
The forecast over the next week has little rain for most of the crop area in the US. Furthermore, the Western plains have almost nothing in the forecast for the next two weeks. Temps are going to rise this week in the West getting up into the 100-110’s. The Eastern US will not be as hot and peak out in the 90’s. The Ridge that is setting up is in the same area forecast on Friday and the intensity is still there today. This forecast is bullish as the Western crop is going to feel the heat. Crop rating are expected to gain for corn and beans by about a point this afternoon, but this forecast is going to turn them back lower over the next two weeks. The forecast for the East is not really all that bad, if another round of storms were to show up, where temps will be normal for summer weather.
The weather is bullish enough that we should be higher, but this business with China is currently holding the markets back.
Have a Safe Day!