AM Comments 07/22/13
Monday, July 22, 2013, 7:39 amSubmitted by: Dustin Weiner
Good morning!
Our markets were mixed last night with soybeans higher and corn a lower. The weather should be viewed as a friendly input this morning. Rains over the weekend were disappointing, with Iowa being the leader on disappointment. Almost 1/3 of the Corn Belt can be considered dry right now and wanting a rain. The main troublesome dry areas are scattered across Iowa, NW Illinois and a few patches in Missouri.
If you are wondering why corn isn’t higher on this weather news – you just need to look at the world markets. For example, Japan bought corn over the weekend for Oct/Nov/Dec from Ukraine and Brazil. Not from the US. Why? Because our new crop corn is too high priced, around $0.50 to $0.75 a bushel more expensive than other countries. We may not have a bin busting crop across the whole U.S. but it isn’t a disaster either. We did a great job last year of pricing ourselves out of the world markets (high prices) because we didn’t have the corn to sell -- but we will soon need to be competitive again in the world markets and today we are just too high priced on new crop corn.
Opening calls
Corn 4 to 6 cents lower
Soybeans 5 to 15 cents higher
5-Day Precip Map:
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