Markets are weaker to start the day with corn down 2 and soybeans down 6.
The violence in Israel that erupted this weekend is prompting a move into safe-haven assets as investors closely watch events in the Middle East to gauge the geopolitical risk to markets. Gunmen from the Palestinian group Hamas entered Israel in an attack on Saturday. Western countries, led by the United States, denounced the attack, and pledged support for Israel. Crude oil is up over $3 per barrel from Fridays close.
The USDA crop production report will be out on Thursday which will give the latest production and carryout estimates. The average corn yield estimate is down minimally from last month at 173.5 bpa compared to 173.8 previously. Soybean estimates are also lower at 49.9 compared to 50.1. Ending stocks for corn are still projected north of 2 billion bushels at 2.138 billion bushels which will make any rallies in corn difficult.
Locally we are in the early stages of corn harvest and yields appear to be much better than expected. I would advise producers to make additional basis sales for any corn you are not able to store this fall and deliver the bushels early as space and lines could be an issue across the corn belt. Basis levels are still fairly tight and will allow you to capture any rallies that may occur in the CBOT over the next couple of months.
Have a Safe Day!