Split markets this morning as corn is up 2 and soybeans are down 20.
Corn is trying to find some support this morning while soybeans are down double digits led by weakness in soybean oil. Palm oil was down 482 ringgits on expectations of export expansion. Crude oil is down over 4.0% as President Biden is expected to call on Congress to suspend the federal gas (18.4 cents/gallon) and diesel tax (22.4 cents/gallon) for three months.
Yesterday’s crop conditions in corn came in at 70% G/EX (-2%/wk) and compared to 65% last year. IL dropped to 71% G/EX (-6%), IA was 83% G/EX (-35), IN was 70% G/EX (-4%), and KS was 55% G/EX (-3%). Improvements were seen in MN at 65% G/EX (+7%), NE was 68% G/EX (+3%) and SD was 79% G/EX (+3%). Soybean conditions were 68% G/EX (-2%) and compared to 60% G/EX last year. The one outlier was IL at 66% G/EX (-10%).
The forecast for the Central US is mostly warm and dry. It was plenty hot yesterday as the ridge was at its peak in strength. Temps will level out over the next week and remain warm in the high 80’s to low 90’s. A few chances of rain exist, however there is no pattern change to wet. Rainfall has been pretty light over the last few weeks, and it looks to stay that way on the 10 day model and the 11-15. The ridge is forecast to move back into a more amplified position at the beginning of July in the Central Us. This forecast is not 2012 bullish, but certainly not bearish.
Have a Safe Day!