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.
As we turn the calendar into July, we’re taking a look back at the markets over the last six months in grains. We’ll also offer our expectations for the balance of 2017. In Farmlead’s 2017 Grain Markets Forecast (posted in January), we made several timestamped projections. You can review them here at your convenience.
As the calendar turned over to May, U.S. weather moved to the front and center of the market’s focus. The dominant feature for the month was the record or near-record rainfall in the central U.S. In the first half of the month, southern Missouri and the adjacent areas were "ground zero," and in the second half, it was the state of Indiana.