Markets are trying to hold on and stop the recent selloff with corn up 1 and soybeans up 8.
Favorable weather over the weekend and rains continuing this week along with temperatures that are not as hot as they had forecasted last week is weighing on the markets. Add in the recession market tone and you can see why the funds are liquidating their long positions in the grain markets. After yesterday close, the funds were reported long 150,000 corn and 80,000 soybeans.
National corn condition ratings fell three more points this week to 64% good/ excellent, now down from 65% last year and the 67% five-year average; corn silking went from 4% to 7%, down from 9% LY and the 11% 5YA.
Mato Grosso’s ag institute IMEA is reporting the states corn crop at a record 39.2 MMT in 2021/22, with 55% harvested as of July 1. This is putting pressure on US grains for export with more available at a cheaper price.
I look for the new crop markets to stabilize near the current levels as we are now back to crop insurance levels. Old crop may continue to have pressure as we move forward.
Have a Safe Day!