Good morning!

Our markets are a bit weaker this morning on what appears to be just profit taking.  We are still trading weather, and the bullish weather pattern has not changed.  I think this market is finally taking a glance at the demand side of the equation and nobody quite knows what price level this market needs to be at to ration enough demand.  Honestly, we don’t know how much demand we actually NEED to ration until this crop stops shrinking.  We do know this regarding next year: supply is getting smaller & demand is getting smaller.  The question is how much of each?

The outside market today are a little weaker with a rallying dollar and lower financials.  There is a small rain event coming across the Midwest today, maybe a ¼ to a ½ inch of rain could fall.  After that though???  Maybe mid-next week for a small shower with temps staying hot throughout. Crop size will be under attack again.  There are rumors throughout the market that China has cancelled some US corn and soybean purchases… this is probably true and more of this needs to happen if we are to ration demand and work prices lower.

Currently

Corn is down 3 to 5 cents

Soybeans are down 4 to 6 cents

http://www.fccoop.com/markets/information.cfm

5-day QPF: