Slightly higher markets overnight as we see some retracement after yesterday’s big selloff. Corn was up 3 and soybeans up 5 overnight. Crop conditions last night declined slightly from 78% G/E to 77% but it is the fourth highest rating for this week in history. Conditions declined the most in Kansas and Colorado. Wisconsin came in at 87% G/E compared to 90% last week. This compares to 75% on the 5 year average. National soybean conditions remained unchanged at 73% G/E compared to 68% on average.
I would not be surprised to see some more selling ahead of Fridays USDA report as traders are currently short 76,000 corn and 45,000 soybean contracts.
Concerns about Chinese demand continue to hang over the market following last week’s meltdown and news that the US intends on unveiling a host of new restrictions on Chinese investment in the US next Saturday, June 30th. This did little to calm fears with China expected to retaliate to any new news.
Fundamentally I do not believe we should not be trading as low as we are, but politics has been the “Trump” card as of late and the markets are struggling to find any traction. Producers sitting on old crop corn are running out of time to move it and may not be given many more opportunities. Historically the June Acreage report and July 4th weekend bring an end to any old crop marketing opportunity for producers. This year the end appears to have come much earlier, but time will tell.
Have a Safe Day!