When we left last Friday there was a potential ridge developing in the central plains that could have brought hot and dry conditions to the mid-west. It looks as of now that this ridge is not going to develop. The U.S. Midwest weather forecast looks mostly quiet the first half of this week before good rains look to fall mainly in the northern sections of the corn-belt. As always, weather is the driver in June and for now it is driving the markets lower.
The Trump administration is expected on Monday to announce changes in biofuels policies, including a plan to count ethanol exports toward federal biofuels usage quotas and allowing year-round sale of fuels with a higher blend of ethanol; the changes, expected to be outlined in a memorandum on Monday, will be subject to the federal rule-making process.
Soybean prices continue their downward trek on increased US/Chinese tensions over tariffs on US/Chinese goods. China threw out a warning against the US imposing tariffs on $150 billion of Chinese goods after weekend negotiations faltered.
This afternoons planting progress and crop conditions reports should be bearish the markets given last week’s weather.
Corn is down 6, soybeans are down 11 and wheat is down 14 to begin the week.
Have a Safe Day!