AM Comments 07/02/13
Tuesday, July 2, 2013, 8:19 amSubmitted by: Dustin Weiner
Good morning!
Our corn and soybean markets were a little firmer last night with nearby corn spreads bouncing back after yesterday’s collapse (meaning old crop is gaining on new crop today, after losing ground to new crop yesterday). USDA crop conditions were out yesterday afternoon which didn’t give the market much for direction. U.S. corn and soybean good-to-excellent ratings were both two percentage points higher.
Weather… the Eastern Corn Belt is expecting some scattered rains over the next couple days while the western corn belt remains dry and relatively cool. The next major system is expected to slide in next Monday through Wednesday, bringing anywhere from a half inch to just over an inch of rain with 80% coverage. All eyes are on the last half of July’s weather – currently the forecasts are hinting at cooler, wetter pattern for that time slot which sounds ideal for the late pollinating corn.
There are rumors in the marketplace that China bought a couple cargoes of new crop corn overnight, which is helping support Dec corn. Yesterday’s low on Dec corn futures was $5.0050, last night’s low was $5.0025 (another new contract low). Will $5 hold? Some traders are projecting it to dip down to $4.50 although it is hard to project a market that is making new lows. Pollination weather (as usual) will be key.
Opening Calls
Corn 3 to 5 cents higher
Soybeans steady to 5 cents higher
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