Grains were lower overnight taking back some of the steep gains posted in Monday’s trade session.
After the close on Monday, USDA’s crop progress report showed a further deterioration in the grain crops. Corn and beans both dropped 2% in their good-to-excellent ratings with corn now at 65% good-to-excellent and soybeans at 63%. The trade had expected only a 1% drop on the week. For spring wheat conditions fell to 35% good to excellent, in-line with expectations and off from 37% previously.
Brazil’s CONAB kept their soybean crop estimate for 2016/17 unchanged at 113.9 MMT but bumped up their corn crop estimate to 96 MMT vs 93.83 MMT last month. USDA has Brazil’s soy crop at 114 MMT and their corn crop at 97 MMT.
Rains are bringing some needed relief to parts on NE/IA today. Lingering showers are expected for the rest of the week in the Central and Southeast Midwest. But the driest areas will continue to be SD, ND, parts of MN, IA & NE. Temperatures in NE are expected to soar into the 100s Jul 17th thru 20th.
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)