8/3/2021

Last night corn ratings dropped 2% to 62% good to excellent slightly below expectations.  Bean ratings improved 2% to 60% good to excellent.  The trade was expecting a decline to 57%, which in all likelihood is why the bean market fell apart today.  I don't want to say I don't believe the numbers, but....If rains fell and made the bean acres better, shouldn't it have rained on the corn acres too?  Last night's forecast seemed to add a little more moisture in both the 6-10 and 8-14 day for the eastern corn belt, which also added pressure to the bean markets today.  We are hitting a crucial time for the beans where a little rain can make a big difference to fill pods.  Let's hope we can catch a shot late this week.  StoneX guess on yield will be today after the close, so that will be a watch for how we start tonight's trade.  It feels to me like this market is in chop mode.  Neither the bulls or the bears can find enough to pull the market either direction. It also doesn't help when we are into a down trending seasonal time frame.  If you have old crop corn left, make sure you have a plan.  You don't want to hold it into a current 84 cent cash inverse.  There are still some holes to fill end user needs, but once they are covered, we go to new crop values in a blink of an eye.  So be careful.  $6 cash corn is not a mistake.  Inverses never end in a good way!