Markets are starting the day lower with corn, soybeans, and wheat all down 8 cents to start the day.
It’s hot and dry across the Midwest this week, but there are increasing chances of rain in the 7–10-day forecasts that have trade trending lower.
Corn planting progress came in at 92% this week, up from 81% last week and 84% both last year and on average; emergence rose 20% to 72%, up from 58% LY and the 63% 5YA. Initial corn condition ratings were 69% good/excellent, down from 73% LY and the 72% 5YA.
Soybean plantings rose from 66% to 83%, up from 64% LY and the 65% 5YA, with emergence up 20% there as well to 56%, versus 36% LY and the 40% 5YA.
The market doesn’t believe crops can get hurt by dry weather in May as long as timely rains come along, which is exactly what the extended forecast is calling for. The Funds started shorting their soybean positions yesterday and are already short corn and wheat.
Forecasts can and will change, but as long as the rains that are on the radar show up, things are looking pretty good and the funds will continue to short the market.
Have a Safe Day!