After Friday saw a late session correction, some spill over correction was seen Monday as well. March is now the lead contract and today's correction came within three cents of contract lows before finding better support.
The dominant feature for the agricultural markets this month was northern hemisphere production. Particularly important were the U.S. corn and soybean crops and the Russian wheat crop. All three crops started the month with modest expectations and some areas of concern, but by month’s end all crop estimates had increased. In the case of Russian wheat, they had increased significantly.
Weekly export inspections for the week ending August 3 came in at 979,000 MT. It's similar to the previous week's movement, but it's more than one-third below what had been exported the same week a year ago in 2016. Corn exports are also slowing.
Grain prices are all in the green this morning. Canola is acting quite resilient in the face of the Canadian Loonie touching 79.5 cents USD. December corn is back above $4 USD / bushel and November soybeans are back into double digits as well.
Grain prices are sitting a little lower this morning after a generally bearish WASDE report out yesterday and some healthy rains falling across a hot Midwest. The USDA put out their estimates with data collected as of July 1.
The heat in North America during the first 10 days of July has certainly got the market building in another weather premium. Areas that got hit with the most hit include southern regions in Western Canada and the U.S. Northern Plains. Temperatures in the 90s hit most of the corn belt and are expected to continue this week, especially in the western half of the region. Without enough moisture to compliment the heat, this is what’s helping drive corn and soybean prices this morning.
Grain markets are the red as traders look to book in some profits after the recent rally, especially in wheat. Soybeans had a solid day yesterday, with the new crop November contract creeping closer to $10 per bushel again on Chicago futures board.