Markets are sharply lower across the board this morning with corn down 22, wheat down 24 and soybeans down 48.
It’s all about the weather and the funds liquidating their position. This will be day three of the break and I’m hoping this is the low for the week. Prices are high, so when they go down it’s not going to be nickels and dimes. This liquidation is going to push an awful lot of longs and speculators out of the market. It is normal to see a break like this as first notice day is not very far away and there is a considerable long in July futures.
New corn is in the 6.60’s and beans are in the 14.40’s. Corn has lost 80 cents in 4 days and beans have lost 1.40. Prices are still high and most of the weather premiums have been pulled out
The forecast for the Central US is mostly warm and dry. Rain is falling in Kansas and into Western Missouri. Looking at the 10-day outlook and into the 11-15, the best chances of rain are for Iowa on July 2nd and 3rd. This is at the very end of the models but has shown up there for a couple days. The ridge breaks down this weekend and we may see pop up showers. This is the wetter market risk that is causing the break. Over the next 15 days rain will be limited and the ridge does return next week and stay in place for the first week of July.
Have a Safe Day!