Markets are lower this morning with corn down 3 and soybeans down 6 as traders look to take some profits from the recent rally in all commodities with weather looking very favorable for harvest in the coming weeks.
Crop condition ratings slipped a little more this week with corn losing 1% and beans losing 2% to 60% and 63%, respectively. The bean drop was bigger than what the trade was expecting. 41% of the corn is now mature with 5% of the crop in the bin. 37% of the beans are dropping leaves with the USDA set to begin reporting harvest data next week.
China continues to secure US soybeans on a seemingly daily basis with Sinograin the reported buyer. The talk is that the Chinese bought another 6 to 10 cargoes of US beans again on Monday. We have confirmation of some of that business on the daily system this morning with the announcement of a sale for 132 TMT of soybeans to China along with another 132 TMT sale of beans to Unknown and 120 TMT of corn to Unknown.
The EPA denied 54 retroactive waivers of the RFS. There are still 14 applications that remain pending. What happens with those remaining ones is uncertain with gasoline consumption clearly down here in 2020. Also in question is what about all the promised government funding for refiners.
The corn and soybean markets may encounter more hedge pressure next week as harvest gains steam.
Have a Safe Day!