Good morning,
Corn is down 3 and soybeans are down 15 to start the day.
Improved chances of rain in South America and harvest selling have the market down this morning.
Argentina saw good rains in the north over the past 24 hours and that action remains this week, and into the 6–10-day period. Brazilian rains remain heavy in the south over the next week, but drier northern areas will start to see better chances for the 6-10 & 11-15 day periods.
Corn harvest advanced from 21% to 30% complete this week, which is in line with 31% last year and the 27% five-year average pace. Soybean harvest rose from 26% to 47% done as of Sunday night, ahead of 37% last year and the 34% 5-year average.
As bean harvest wraps up, producers are turning their attention to corn. There is not an abundance of rain in the forecast, and corn harvest may mirror the fast-paced soybean harvest. The next couple of weeks, basis may hold at elevators that have a lot of space to fill, but once they feel comfortable that they will fill, basis may weaken substantially. The next 3 or 4 weeks, we could see basis possibly weaken as much or more than the futures market. Worst case, the basis and futures succumb at the same time due to harvest pressure.
Have a safe day!
Garry Gard
920-348-6844