The markets are steady to open the morning with corn up 1 and soybeans down 1. The markets are trying to navigate the trade fears and leaving fundamentals on the sidelines for now. We have no fundamental reason for corn and soybeans to be trading as low as they have been for the last few days, but political strength is and will continue to pressure the markets. Yesterday the European Union triggered its first phase of retaliation to the US by releasing a list of products that will have a 25% tariff applied. Soybeans were not on this list, but corn was.
The drought monitor shows improvement for central North Dakota this week as well as some drought receding in Kansas. The drought classification worsened in areas of Southern Iowa and Northern Missouri. Forecasts call for favorable temperatures and moisture over the next week with the first week of July looking warmer and drier for the Midwest.
Weekly exports released this morning were terrible for corn and disappointing for soybeans. Corn came in at 6.5 million bu. compared to the ten week average of 32.6 million. Soybeans came in at 11.1 million bu. compared to the ten week average of 13.2 million. Both are hanging slightly above USDA projections but have fallen in the last few weeks.
The Funds are short 95,000 corn and 69,000 soybean contracts after yesterday’s trade.
Until we see some progress made on the trade wars I do not expect the markets to move higher.
Have a Safe Day!