Corn: Monday morning, the much-anticipated weather maps were drier than what we saw leaving on Friday. Seeing less rain had the corn market start out with moderate volume selling. There did appear to be a sign of light fund liquidation as well.
Overall, there was pressure on this corn market as trade gets prepared for the supply/demand report on Wednesday, which is not likely to make any changes with acreage. With all the bullish momentum coming from talk of acres being switched/abandoned, this is not the report to expect heavy support.
At the end of the month, we will get the Planted Acreage report when all corn bulls can go back to making the case for lost acreage, but this report is not the time to expect price help from the USDA.
Soybeans: The soybean bears came out of the weekend growling as the market sold off from the opening Sunday night and was pressed throughout the day session.
The market had rallied sharply higher on Friday on anticipation of a wet weekend that would continue to stall planting progress. The weekend’s rainfall was not as widespread and intense as feared and that allowed for some “risk premium” to come out of the market.
With more rain in the forecast for midweek and another round on the way for the western belt over the weekend and the east early next week, the market did not completely fall out of bed.
Wheat:
- Ukraine’s Agricultural Minister estimates Ukraine’s new crop wheat production of 20 mmt versus 15.8 mmt last year. Ukraine will not impose a limit on wheat exports for the first part of the marketing year year due to these high production estimates.
- Spring wheat good-to-excellent rating came in at 62% and the winter wheat crop is 5% harvested as of the first report for the 2013/2014 marketing year.
- July Chicago wheat held light support at 680’0 and was able to firm up to close the session… Alex Bassett