Look for the markets to remain quiet today with the next USDA report coming out tomorrow at 11am and with no tariff news expected. Expectations for tomorrows reports appear bearish with estimates that both stocks on hand and acreage will be higher. If acreage is only slightly higher I would view it as neutral the markets. But if we get an acreage bump to 89.0 million or more and stocks at 5.3 billion bu. or higher, it could push the markets to new contract lows.
Weekly export sales of corn jumped this week to 33.5 million bu. which is back in line with the ten week average after only 6.5 million last week. Soybean sales were slightly higher at 13.2 million bu. New crop sales of both were strong with corn at 25.1 and soybeans at 23.6.
The numbers and trader reaction to tomorrow’s report are unknown, but regardless of how these numbers come out, we will struggle to move this market higher without some sort of positive trade news with China.
Producers should have firm offers in for old crop slightly above the current levels in case we would see the market initially move higher after tomorrows numbers are released. $3.40-3.50 range would be my target. New crop offers should be handled very similar with offers in the $3.50-3.60 range for fall delivery. I would not recommend any sales for next spring and summer at this time in hopes that our political issues can be resolved by that time.
Have a Safe Day!