After a weekend of storms and cooler temperatures setting in, the grain markets open up weaker to begin this new week of trade. Corn is currently down 4 and soybeans are down 6. This week looks pretty dry for our area, but chances of rains are expected to ramp up in the 6-10 day time frame. The cooler temperatures come at a welcoming time as we are seeing much of the corn crop begin to tassel and start pollination. The cooler temperatures are expected to stay for a while. Extended forecasts are showing the warmer temperatures will return in the 11-15 day time frame.
U.S. – China trade talks are another highlight of today’s news in agriculture. The trade talks are beginning to show more signs of progress. China’s official Xinhua news agency said that numerous Chinese companies are seeking purchases of U.S. agricultural products. The news agency reported that Chinese businesses have recently made inquiries with U.S. exporters to buy crops/agricultural products and applied for lifting of tariffs. Moving forward, the markets will certainly keep an eye on the trade negotiations and will be hoping for more progress to be made.
The weekly crop progress report will be released at 3 p.m. this afternoon. Analysts are estimating a corn condition rating of 59% GTE (58% GTE last week, 71.4% 5-year average) and analysts are estimating a soybean condition rating at 54% GTE (54% GTE last week, 67.2% 5-year average). Moving forward, I don’t think trade dynamics will change much until we see the USDA’s yield and acreage confirmation data on August 12th. I expect markets to remain volatile and trade within the established range that we have seen so far this month. I expect the majority of price movement will be based on changes in weather forecasts and any technical indicators. I would advise producers to keep a close eye on the markets in the days to come and consider their options on marketing their crops, especially as the time gets closer for the release of August’s report!
Have a great day!