Lower markets out of the gates today with corn down 4 and soybeans down 2.
Corn futures have dropped 50 cents so far this week and more than 12% from their record in January. China’s top agriculture think-tank has cut its estimate for total corn demand in 2020-21 by 3 million tons to 278 million tons and by 5 million tons for next year. While the researcher kept import predictions unchanged, the decrease in local demand strengthens speculation that foreign purchases may have peaked.
The 10 day forecast has rains coming to the Central US this weekend. Amounts are expected to be in the 1-2 inch range for Illinois and Iowa. Indiana and to the Southeast will see up to 3-4. The rains in the forecast have moved East leaving the West mostly shortchanged. Temps are really going to heat up out West the beginning of next week. The heat advances West into the end of the model run. The forecast has less rain, but it still has enough to keep the market down. The heat is still going to be a problem for all those out West.
Have a Safe Day!