Good morning,

 

The markets are higher to start the day with corn up 5 and soybeans up 7.

 

Futures have put together three consecutive days of higher trade. September futures have hung above the $4.00 mark for the last two days and should do so today barring any major selloff.

A few fundamental factors could be changing, which could cause greater price volatility in August than previously estimated. A warming forecast for the next two weeks could have the managed money crowd moving their short position.

 

The outlook for well above average summer heat is likely and it makes you ask the question about how the crop may finish out nationally. It will be interesting to see if the impending heat takes an edge off the corn yield with any late pollination and if soybeans can fill out pods. Precipitation is also split nearly down the center of the county with a dry Western belt and an average Eastern belt.

 

We have had reports in the last few days of new crop export sales for corn and soybeans to unknown destinations that has added some support to future contracts. New crop exports are on pace with last year’s numbers, but behind the 5-year average.

 

Old and new crop sales should be made on what I believe is a short-term bounce in the markets. We have failed to sustain our highs the last two days, which indicates the weakness in this rally.

 

Have a Safe Day!

 

Garry Gard

920-348-6844

ggard@didioninc.com