Corn: Corn was impressive bouncing off of contract lows Monday around the $3.20 level, with some follow through on Tuesday, eventually pulling back and closing unchanged. Crop progress on Monday afternoon showed G/E ratings at 71% vs 72% expected and 72% last week. This is partially the reason for the bounce, but the Derecho that went through most of Iowa, Illinois, Michigan and N. Indiana, also played a roll. The interesting part about this, the derecho supposedly affected 10-12 million acres of corn, with corn not being able to rally more than a few cents. To me, this shows the extent of how much carry over and how large of a crop we are still expecting. The derecho can still take a toll on overall yields, but this might not be realized until harvest time. Today there is the USDA Crop production and USDA Supply/Demand report at 11am CST.
Soybeans: Since mid-April, Soybeans have been stuck in this upward trend channel, and at the end of last week it had finally broken out of this to the downside from good weather and less demand at the time. The market ran into some support at $8.65, which was an old high from back in May. The Derecho that hit parts of the Midwest will not have as much of an effect on soybeans as corn. Today’s USDA crop production and supply/demand report should give the market some short-term direction.
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