Markets are mixed this morning with corn down 3 while soybeans and wheat are up 2. Yesterday’s selloff in corn and soybeans was a result of Mondays planting progress and crop conditions report that has traders preparing for large carryouts this year. This will continue to be the story if weather continues to cooperate in the growing region. The past couple days moisture maps show that the tropical storm has been dumping adequate rain with limited areas receiving excessive amounts. Extended forecasts call for 10-14 days of warmer and drier weather followed by more moderate temperatures and rain.
Traders will await tomorrows report and continue to monitor weather updates here and overseas. The expectations for tomorrows report are for slightly increased old crop corn stocks with soybeans and wheat unchanged. I do not expect any changes in the new crop ending stocks as they will wait until the July WASDE to update those numbers to incorporate the June 30th acreage numbers. I also look for the June 30th report to carry more weight and volatility than we typically see.
In a statement yesterday, Goldman Sachs stated they believe commodity prices are too high. They don’t believe current corn and crude prices are sustainable with the loss of global demand and the massive oversupply in the corn market. They forecast corn prices to drop by 7.4% (.25 cents) in the next quarter which would put futures prices at $3.00 for the July contract and $3.15 for the December contract.
Be sure to get some sales made and offers in with your buyers soon!
Have a Great Day!