Weaker markets to close the week in corn as we are down 6 this morning.
Wednesday’s USDA report is in the books and now off the traders’ minds as they switch their focus to weather. The 10-day outlook is dry across the US. There are light chances every few days, but no major organized systems. We have a new tropical storm watch for Elsa, which is supposed to head toward the East coast. The EU model kills the storm before it makes landfall, where the GFS says it will make landfall into Florida. This will cause fluctuations in the models over the next few days. Looking at temps, it is mostly a blanket of warm air that covers the entirety of the US. It will stay hot out west, with more normal summer temps in the Central US. The weather looks to be bullish going home for the 3-day weekend, but I do not expect traders to add length to their positions today.
Old crop basis levels have been sliding over the last couple weeks and look to get even weaker. End users appear to be covered for the balance of the crop year and baring any great delay in harvest things will continue to weaken. Anyone holding old crop corn should get basis contracts in place at a minimum.
Reminder there will be no markets on Monday.
Happy 4th of July!