Market Commentary  07/13/20 3:30:07 PM Printer Friendly VersionPrinter Friendly Version

MONDAY JULY 13, 2020

CORN
Corn futures closed weaker today, as a more favorable forecast for the Midwest weighed on prices. Recent weather maps suggest parts of the Midwest will see showers and thunderstorms over the next week, while temperatures are expected to be less extreme than previous forecasts. Both of which, should be favorable for pollination. NASS will release updated crop progress/conditions this afternoon. Last week’s report estimated the U.S corn rating at 71% good to excellent. Traders are expecting to see conditions decline by 1-3% in today’s report. USDA released weekly export inspections this morning. Corn inspections fell within trade estimates at 35.5 mln. bu. This was, however, a noticeable drop from last week’s 40.7 mln. bu. and marked the lowest corn inspections number in 12 weeks. This morning’s total was also slightly below the weekly amount “needed” (approx. 38 mln. bu.) to reach USDA’s annual export projection. This week’s total did include 119,000 tons of corn to China.

SOYBEANS
Soybean futures also closed the session lower today. A mostly favorable forecast for bean development coupled with news reports late last week that President Trump is doubtful about moving forward with a 2nd phase of trade agreements with China (due to dissatisfaction regarding China's actions in the early days of the coronavirus outbreak) hung over the market.
This morning’s weekly U.S. soybean export inspections fell within trade expectations at 17.8 mln. bu. but were disappointing nonetheless, as they were below the average weekly total “needed” of approx. 25+ mln. bu. the balance of the marketing year to reach USDA’s annual export projection. Of this week’s bean total, China took 163,000 tons. To date, China has more than 3 MMT of U.S. soybean purchases outstanding for 19/20. For reference, China should be booking 1.5 - 1.8 MMT’s of U.S. beans per week to fulfill their purchase pledges. NASS will release updated crop progress/conditions this afternoon. Last week’s report estimated the U.S bean rating at 71% good to excellent. Traders are expecting to see conditions decline by 1-2% in today’s report.

 
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