My hope was that the end of June would mean better things to for the markets but the first trading day of July is not looking that way. Corn is down 7, soybeans down 12 and wheat is down 8 to start the month. During the month of June, corn was down 42 cents, Soybeans were down $1.54 and wheat lost 83 cents.
Fridays acreage and stocks report did very little to stop the bears with higher acres and quarterly stocks in corn reported. Corn acres jumped to 89.1 million which is a million more than the March report. There is talk that this number could increase when the final acreage comes in January. With acres at 89 million plus and a yield of 175 bpa and demand remaining unchanged we would be looking at a carryout of 1.6 billion bushel which would signal higher prices. Keeping demand at last years level with the current tariff talks will be very difficult. Traders will be closely monitoring any potential trade talks this week with Friday being the tariff implementation date set by the Chinese. The 25% tariff will keep the markets under pressure as we wait for updates.
Weekend rains west of the Mississippi with nearly all of Iowa and many parts of Nebraska and Southern Minnesota receiving modest rains eased the concerns of the hot weekend temperatures. Weather forecasts show temporary relief to start the week before a hot and muggy Fourth of July. Low 90’s are expected in most of the Midwest by the middle of the week with a cooler trend and less humid by the weekend.
Have a Safe Day!