Morning Market Review by Bryce Knorr
Morning Price Trends
Corn: Up 5 to 7
Soybeans: Up 7 to 10
Wheat: Up 5 to 8
Futures are trading higher this morning, recapturing a little of Monday’s steep losses. While outside markets are also stronger, low late summer volume creates conditions for choppy trade. Some European funds are pulling back on commodities, for fear of begin labeled as food speculators, a move that highlights a political risk to the market from the emotional response to the drought.
Corn is posting steady gains in quiet overnight trade, as concerns over demand confront the reality that rationing will be needed for months in the face of sharply lower production. December futures are trying to battle back to the $8 benchmark, after holding support Monday at the line drawn off three-week lows.
Crop Progress ratings out after the close showed more deterioration in the worst fields, those rated very poor, with Kansas, Missouri, Iowa and Nebraska all losing ground. That knocked a half bushel per acre off yield potential, which is now down to just 115.6 bpa according to my yield model. USDA said 10% of the crop is mature, with 42% dented, compared to 16% on average. Check out yield trends in your state on our Statistical Tables & Charts pages.