Corn is trading slightly lower to start the day after rallying higher yesterday by 10 cents in the December contract. Prices remain rangebound, but funds were likely exiting a portion of their short positions yesterday.
Yesterday’s Crop Progress Report showed the good to excellent rating for corn falling by 1 point to 67%. 61% of the crop is silking which compares to 41% last week, and 17% of the crop is doughing which compares to 8% last week.
While the average good to excellent rating fell by 1 point, ratings in Iowa, Illinois, and Indiana all improved and show high ratings. States on the fringes of the Corn Belt like Ohio, Michigan, Missouri, Nebraska, and Kansas were responsible for the slip in ratings.
Soybeans are maintaining their momentum from yesterday’s impressive rally to trade higher again this morning. Yesterday, futures gained back all of their losses from the previous week and then some. Soybean meal is higher this morning while soybean oil is trading lower.
Yesterday’s Crop Progress Report showed the good to excellent rating for soybeans staying stable at 68%, but as in corn, there were improvements in the heart of the Corn Belt while conditions slipped on the fringes. 29% of the soybean crop is setting pods and 65% is blooming.
Yesterday’s inspections report showed 12.0 mb of soybeans inspected as of July 18 which brought total inspections for 23/24 to 1.556 bb which was within trade expectations but is down 16% from the previous year.
All three wheat classes are trading lower this morning after rallying yesterday led by spring wheat. Minneapolis wheat was the leader yesterday but has been under more pressure with spring wheat ratings favorable.
Yesterday’s Crop Progress Report showed the winter wheat harvest at 76% complete which compares to 71% last week. Spring wheat was called at 77% good to excellent which was unchanged from last week, and 89% of the crop is heading which compares to 76% last week.
Wheat production in western Australia is set to improve by up to 12.3% this season following recent rains, and production is estimated at 10.5 mmt. The favorable conditions will also benefit the barley and canola crops.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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