Grain Futures Prices Rally on Declining Crop Conditions
Grain futures prices rally on declining crop conditions. Hot and dry weather conditions throughout the Midwest continue to raise concerns over drought.
Grain markets were firm today, with corn, soybeans, and wheat all finishing the day in positive territory. At the close, front month July corn futures were 10 ½ cents higher, settling at 608. The new crop December contract was 4 cents higher to 541. On the soybean side, we saw July futures 3 ¼ cents higher at the close, settling at 1353 ¼. The new crop November contract settled the day a nickel higher to 1184 ¾. July Chicago wheat futures were sharply higher in the early morning trade but finished the session about 20 cents off those highs, settling just 3 ¾ cents higher to 627 ¾.
Yesterday’s crop progress report showed good to excellent conditions for corn at 64%, this was a decline of 5% from last week. The “I” states, Iowa, Illinois, and Indiana all saw meaningful drops in conditions. Hot and dry weather has been the big concern and yesterday’s report validates those concerns with ratings dropping 19% in Illinoi, 10% in Indiana, and 5% in Iowa. For soybeans, it was the first condition ratings of the year. Good to excellent ratings for soybeans were reported at 62%, 3% below the average analyst estimate.
Yesterday’s weekly export inspections were largely in line with expectations. We did get some more export data this morning in the way of a flash sale. Private exporters reported sales of 165,000 metric tons, or about 6 million bushels soybeans for delivery to Spain during the 2022/2023 marketing year.
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