Spill over selling continued again today in corn, which helped to post new contract lows. Soybeans consolidated within Friday's range on Monday as supply bears and demand bulls continued to do battle. Wheat saw another negative day as new lows were made again.
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.