Markets - General
Wet weather forecasts across the Midwest caused commodity prices to tank Tuesday, with soybean oil and corn hitting the daily limits lower. Much of the Midwest is forecast to receive rain at key pollination time.
Chicago Board of Trade corn and soybean futures rose to their highest since mid-June on Thursday, with traders noting continued support from a U.S. government report that showed spring plantings fell below expectations.
Given stubborn demand, the answer hangs on 2021 crops.
Digging the depth of the lower Mississippi from 45’ to 50’ could generate an extra $461 million annually for the U.S. soybean industry.
USDA’s June 30 Acreage report is known to offer a few surprises, and the 2021 edition delivered.
Weather was a major factor, but the attention is also on USDA’s June acreage report set for Wednesday, June 30. Mark Gold and Chip Nellinger talk about weather and acreage leading into the big report.
Corn prices came under pressure Tuesday. With July corn falling 37 cents to end the day to close at $6.20, the closing price on Monday marked a one-month low.
After corn fell to one-month lows on Tuesday, corn prices clawed back on Wednesday, and soybean prices continued to slip. AgriTalk explains why China and 2021 crop potential continue to be the key fundamentals at play.
As commodity prices screamed higher, the cost of doing business is increasing for grain elevators also was on the rise. And market analysts say if commodity prices rally again, it could come at a cost to farmers.
For the week of May 17, corn was higher and soybeans were down hard along with wheat, meal, canola and soy oil. There has been good opportunities to sell cash and avoid the futures exposure.