As is the case every July, U.S. weather played the dominant role in agricultural futures markets this month. For the corn belt, it was a very good month; it was the fifth rainiest July in the past 121 years and temperatures were exactly in line with the long term averages. Not surprisingly, many have started to discuss record yields for corn and soybeans. We believe that is a reasonable assumption for corn, but a bit premature for soybeans.
Since the USDA WASDE report is scheduled to be released on Monday, Nov. 10th, it doesn’t appear as though the cotton market is setting up nicely for any substantial moves going into the end of this week.