Our markets are taking a breather so far this morning after this recent rally took our markets to prices we have not seen in nearly a decade. We are only a couple days away from the USDA releasing its monthly supply and demand report (11 am Wednesday), which will bring us the government’s first world view into next year’s S&D.
Weather-wise, rains did fall across a good portion of the corn belt, maybe a little better than forecasted?? With the 6–10 and 8–14 day outlooks also looking favorable, the U.S. weather story may stay a touch muted for now (though it isn’t going away, we have a long road to get to harvest). We can’t say the same for Brazilian weather as the dry areas are still dry and the forecast doesn’t show signs of relief. What this stress means to crop size will of course be spotlighted in Wednesday’s report as Brazil is the world’s second-largest exporter of corn.
Overall for today, the market looks like it wants to take a step back; we will see if that lasts all day or not. Corn has closed higher for 7 trading days in a row, will today be the day that ends the winning streak? Markets rarely move in straight line like this, and with all of the “news” to come at us this week (let alone potential changes in weather forecasts), a zig-zag here and there is to be expected.
Corn is 5 to 10 cents lower
Soybeans are 5 to 10 cents lower