Another day, another grain commentary focused on weather. The market appears to be more than satisfied with rainfall totals over the long weekend and our extended forecasts which have turned cooler and wetter than they were going home on Friday. Much needed precipitation was realized in most of Minnesota and parts of the Dakotas this weekend as well, though coverage in Iowa and Nebraska were lackluster. Have we solved the production problem we’re facing this crop year? Not even close. Does it look like we have a better shot at solving the problem? The market will tell you yes (at least this morning). It’s important to remember that as the colors on the weather maps change, so does the tone of the markets. It may be a different story later this week, or tomorrow for that matter.
Another piece of news that may impact the markets this morning is that the USDA Attache in China lowered their Chinese corn import estimate for next year by almost 230 million bushels. While this may be an attempt to fix prices so they can buy more cheaper (the Chinese are experts at that), real corn export numbers will be front center this year as we look to determine just how much demand there is for U.S. corn.
As of now, the bears have control of the market. Unfortunately, instead of the grand finale of fireworks we were hoping for, it looks like boat they were being launched from caught fire and imploded.
Corn: down 38 to 40 cents
Beans: down 51 to 55 cents