Good morning!

Our markets are higher overnight, led by soybeans.  Yesterday NOAA released updated 30 & 90 day weather forecasts which painted a hot and dry scenario for the corn belt.  This has bean traders nervous as beans are basically made in August.  There was talk that some electronic traders started taking profits in their corn positions, selling corn and buying beans – pushing that corn/bean spread out. 

As far as nearby weather? Not much change. Ohio and parts of Indiana did receive some much needed rainfall, I am not sure what help that gives to the corn at this time (depending on planting/maturity/etc) but I think they will take anything they can get.  There are also stories that China is cancelling new crop corn purchases from the US and the Korean Feed Association asked the US to use less grain stocks for biofuels.  Safe to say the demand side of this equation is starting to get shaky.  We aren’t hearing of many new crop soybean purchases from China being cancelled – probably because there is nowhere else to buy beans. If they do cancel bean purchases they will probably need to replace them with their own reserves.

Currently

Corn is steady to up 5 cents

Soybeans are up 10 to 20 cents

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

NOAA MAPS BELOW…

30-day: