Morning Market Review by Bryce Knorr
Futures are trading mixed this morning, with corn and wheat trying to fend off on-going bearish pressure from liquidation in soybeans. Outside markets are also very nervous on rising international tensions and concerns.
Corn is fighting to avoid further losses today, after testing eight-week lows on Monday. Futures couldn’t withstand spillover pressure from soybeans, especially after Friday’s rally failed to overcome chart resistance.
Storms shouldn’t slow combining much this week, with USDA reporting 26% of the crop harvested as of Sunday, in line with our expectations. Monday’s Crop Progress showed the percentage of the crop rated good to excellent up 2%, adding almost 2 bga to nationwide yield potential, with good gains noted in Iowa and South Dakota. Still, USDA is likely still too high in its yield forecast, with harvested acreage the big uncertainty going forward. The Farm Service Agency updated its estimate of plantings yesterday, but the data doesn’t include non-enrolled ground, adding little to the debate over harvested acreage.