Tuesday, July 16, 2019
Closing Markets: Corn -6 old & new corn. Beans -14 old & new. Wheat -1.
Corn futures closed lower for the 2nd day in a row as better than expected crop conditions offered resistance. Corn rated in the good to excellent category was estimated at 58%, up 1% from a week ago. The trade was looking for a slightly lower number. Corn maturity still runs well behind average with silking at 17%, versus the average of 42%. The hottest temperatures so far this year are expected this coming weekend, with some spots of the Midwest seeing pollination happen during this period. Rain is moving through the corn belt today, but coverage and totals will be spotty. Temps do cool down next week with the midday forecasts a little wetter today. The China trade discussions are coming back to the forefront again today with Trump tweeting that “China is supposed to be buying U.S. farm products.” He reiterated that there is a long way to go with China on trade and he is not opposed to putting on additional tariffs. Ethanol numbers will be out tomorrow morning. December corn fell below the 20-day moving average and is near the midpoint of the recent range. Support showed up today near $4.35 with the 100-day moving average just below at $4.30.
Soybeans finished weaker as a combination of better ratings and renewed trade concerns with China weighed on futures again today. Soybean ratings in the good to excellent category increased by 1% to 54% good to excellent. The trade was expecting ratings to be slightly lower. Ratings were generally better in the east, while western ratings were largely steady. Beans are less sensitive to heat right now that corn, so the upcoming hot temperatures are not expected to have much impact on bean crop conditions. Some areas do need some rain to get new planted beans up and going. Beans are just 22% blooming versus the average of 49%. Trade talks with China were newsworthy again today with Trump mentioning additional tariffs and that trade talks have a long way to go. Concerns about China’s economy are already a worry for commodity markets with the trade dispute a further disruption of U.S. demand. Phone talks between the two countries are said to be on-going.
Winter wheat harvest is estimated at 57% versus the average of 71%. On-going wheat harvest around the northern hemisphere is keeping a lid on wheat futures.
Have a great evening!!!!
Emery Branch Manager/Originator || Topflight Grain Coop
593 Emery Rd.
Maroa, Il 61756
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