Corn is down 40 and soybeans are down 55 to start the day! Corn and soybeans are down hard this morning after favorable weekend rains and forecasts for cooler and wetter weather in the 7-10 day.
Over the weekend some rains did fall in the Dakota’s and MN. The 10 day forecast totals will have as much as 2.5 inches of rain for the Central US. The storms show up on Thursday and build into Friday. Most all of the rain in the 15 day run is for the later this week, and then a blocking ridge returns. This looks like more normal summer weather with ridges advancing and retreating allowing rains to move in.
A federal appeals court on Friday threw out a Trump-era Environmental Protection Agency rule change that allowed for the sale of a 15% ethanol gasoline blend in the summer months.
The decision deals a significant blow to the ethanol industry and corn farmers who grow the crop from which the fuel additive is made. They had anticipated increased ethanol demand through year-round sales of the higher blend.
Most gasoline sold in the U.S. today is blended with 10% ethanol. Corn farmers and ethanol refiners have pushed for the government to allow the widespread sale of a 15% ethanol blend.
The 4th of July is almost always a turning point in the markets. If we come out of this holiday weekend with rain or forecasts for favorable weather you can guarantee the markets have seen their highs. This is the case this year but producers should look at the opportunity in front of them instead of what they missed. We still have old crop corn prices north of $6 and new crop prices north of $5.
Have a Safe Day!