Markets turn around…a correction that wasn’t a Tuesday. USDA report out tomorrow. Will see a quick knee jerk reaction to the report & then the report market reaction will mellow out some. Will June report have more weight than the September report? Will the weather & warmth for first part of July be a market issue? Another pressure point has been COVID-19 & its effects on the markets of soybeans.
Funds are liquidating during the day trade after liquidating overnight. Buy corn/sell beans is the feel. Weather is the market right. No major signs of drought in the Midwest. Crop progress info out later this afternoon. Southwest Kansas dry but not drought dry. Brazil should be releasing final bean & corn estimates. Shouldn’t be a surprise to see a large number of soybeans & unchanged on the corn. S&D Report comes out on Thursday. Not a lot of replant going on across the U.S. we need the problems to adjust the markets, but we must live in reality. Ethanol margins remain stable.
Highlight of the day was the wheat market…crop doesn’t look good & the market is finally responded to it. EU wheat isn’t good, U.S. wheat has some struggles. Tension once again with China. Shifting away from planting & focus goes to weather & plant growth. Rains of the past few days will help out the crops with upcoming heat. Bean exports were small, but to China.