Weather helping soften corn & soybean futures
We expect a warmer week this week vs. the same week last year in both the Eastern and Western corn and soy belts; however, the average temperatures across the region will range in the mid 70s to low 80s, which will be good weather at this stage in the growing season. Corn and soybean futures markets are continuing to exhibit trader uncertainty, as they are in the phase where they are reacting to daily and sometimes hourly weather reports. Further, anytime the models are showing some heat building up in the midwest, traders get a little trigger happy. But this week should provide fundamentally bearish conditions as temperatures will be favorable, and sporadic but sufficient moisture will contribute to good growing conditions. The rains received throughout much of the midwest over the weekend should have Wednesday’s corn and soybeans futures start the session off trading lower. Weather Trends has been discussing favorable crop conditions over the majority of the corn/soybean production region throughout the summer, and our anticipation for good yields in both crops seems likely. This is supported by the recent USDA upgrade of both crop conditions and production estimates (corn – 13.109 billion bushels; soybeans – 2.658 billion bushels). The next NASS crop estimate will be released on 12 Sep.
