7/6/2022
Jul 06, 2022

Corn and soybeans tried to bounce higher overnight with beans seeing some 20 cent higher trade and corn around 7 cents higher. The short rally was sold heading into the coffee break and we spent most of the day bouncing around on either side of unchanged. A severe weather system moved through South Dakota and parts of Iowa, Minnesota, and Illinois yesterday which offered some short-term incentive to buy the overnight with talks of large hail and damaging winds but it turned out to be mostly just talk. We end the day on a sort of "Hail Mary" 2-7 cent higher finish on corn and 1-7 cents better on soybeans after fresh weather outlooks favor hot and dry for the second half of July. I don't know if I'll ever understand why the market always acts surprised about heat in the summer. The weekly crop conditions report showed an expected decline good/excellent in corn of 3 points to 64%. Soybeans considered good/excellent were lowered 2 points from the previous week to 63%. More importantly, corn and soybeans are both viewed as 9% poor/very poor, meaning 90+% of the crop is currently average or better.
Excellent recoveries off of lows the past two sessions. Money is on the sidelines for now keeping their eye on U.S. weather.

Excellent recoveries off of lows the past two sessions. Money is on the sidelines for now keeping their eye on U.S. weather.
