Corn finished 13 cents down on the week on the December Contract
Beans down 28 cents on the week on the November Contract
The markets closed this week with corn and soybeans finishing in the red. The marketplace continues its sporadic trading of hot rally’s followed up with a sharp downturn taking back gain seemingly faster than it was given.
The corn market this week closed down 13 cents to close at $5.30 on the December Contract. The market continues to watch the weather outlook as we are at a critical point for this corn crop. According to yesterday’s drought update, 59% of corn regions were in some sort of drought condition, and 23% were severe, the worst since 2012. While this might seem like a reason for the markets to rally, relief is in the forecasted outlook, so markets are taking back gains. Looking forward, I can see the market continue its pattern of trading with the temps with “hot rallies” but also sudden “cool downturns” at least for the forecasts nearby. The market is believing it is looking at a large 2023 crop with record acres planted as well as great weather in the growing season, especially during critical growing conditions early on. The classic saying “July makes corn and August makes beans” holds true as traders are winding down their weather fears for corn and moving on to soybeans.
Soybeans this week closed 28 cents to close at $13.82 on the November Contract. As I stated before, the soybean market is now entering its critical weather period, thus making traders very concerned about heat and other possible weather problems that could drop production estimates. If we remember from the last USDA Planted Acres report, soybean acres are down, which means weather development will be a key factor in producing a large crop on an already small acreage. Now with being small on acres of full-season beans seems bullish. Still, it will be interesting to see how double-crop acres of soybeans end up following wheat harvest in the southern plains and will they yield and, if so, potentially setting up for increased production and end-of-year carryout.
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