Morning Market Insight

July 27, 2018
Drew Johnson
Grain Marketing Specialist   
Corn: 1 lower
Corn trading steady to start the last trading day of the week. The US corn crop continues to progress nicely, and weather forecasts continue to promote that fact. The USDA will release its first field-based yield estimate in the August 10th report. Does that jump higher, and challenge the USDA’s prediction of lower world ending stocks next year? We shall see. US corn demand remains high. December corn continues to hold support at the July low of $3.50 and will continue to challenge the resistant point of $3.80.
Soybeans: 5 higher
Soybeans regressed back to it’s current trend after the news that Europe committed to purchase more soybeans came and went as the scope of how much they will purchase has yet to be determined. Overall traders are still watching for any glimpse of hope that some negotiations will come with China. Crop conditions remain good, and weather forecasts continue to promote that idea. The trend is bearish.
Wheat: MPLS: 6 lower. KC: 6 lower
Wheat is lower on the overnight trade. The Wheat Quality Council finished the wheat tour, on Thursday, week, and estimated that the Spring Wheat yield will be around 41.1 bushels per acre. This is higher than last year’s 38.1 bushels per acres, but well below the 5-year average 45.4 bushels per acre. The tour found that wheat conditions are not meeting the expectations of 79%, good to excellent, that the USDA predicted. Will the USDA drop the yield estimate in the August 10th report? World production problems continue to be a support for wheat as well. 

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