Weaker markets to end the week is the way it’s starting out. Corn is down 14 and soybeans are down 17 out of the gates.
Rain is the market mover this morning. All the Midwest has received and will continue to receive rain over the next 7-10 days based on current forecasts. The heaviest amounts with reports of 6-9 inches along the northern area s of Missouri and southern portions of Iowa is what we are hearing. With temperatures in the low to mid 80s forecasted for the 7-10 day models and continued rain, this crop is going to be looking very good coming out of the 4th of July weekend.
Weather may be in the driver’s seat, but there is little doubt that traders have circled June 30th on their calendars and are anxiously awaiting the USDA’s Quarterly Stocks and Planted Acres report. Historically, corn acres have increased in the June report compared to the March intentions report 12 of the last 17 years. Estimates for next week’s report range from 92 to 97 million acres. The consensus appears to be between 92.5 and 93.5 million acres. If acres come in higher, which is definitely feasible, then this should add further pressure to futures prices.
The clock is ticking on old crop corn and unfortunately, I don’t see us testing our highs set in May. We should be able to hold the mid to low $6 level for a little while with demand remaining constant. I would advise producers to get sales on the books for any fall corn that you need to move immediately and get some sales and offers on for late winter to early spring of next year to be safe.
Have a Safe Day!