July corn and wheat fell sharply while soybeans finished slightly higher. July wheat closed 23 ¼ cents lower at $6.56 ¾ while July corn closed 16 cents lower at $5.62 ½. July soybeans settled 4 ¾ cents higher at $13.86 ¾.
The majority of this weakness came during the day session after the dollar made its way to positive territory. We also had CIF basis declining slightly for corn and increasing for soybeans as the day went on. Weather is expected to cool off with additional rain later this week and the market is welcoming the relief.
At the end of the day front month corn settled at a new low level we haven’t seen since December of 2010!
CHART – FRONT MONTH CORN (WEEKLY SCALE)
Last week the market was shocked by how high the ratings were for corn. This has weighed on the market ever since as the high that Monday was $5.49 ½ (December) and now we are back down to $5.17 ½. Today’s crop progress shows the corn rating at 73% which is down 4% from last week. Corn also came in at 92% emerged compared to the 5 year average of 69%. The rating drop and percent emerged were both in-line with expectations and aren’t very definitive for trade direction tonight. Soybeans are now 89% planted and 61% emerged which is well ahead of schedule. Wheat dropped another 4% in the good – excellent categories and is at 9% harvested.
For now we want to continue to watch the weather forecast for any changes. If you would like a free trial of the EHedger research please click on the link below. To discuss opening a futures/options account please contact EHedger at 866-433-4371. Thanks have a great rest of the week!
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