Corn – The corn market was rather boring, unable to get any footing on Wednesday. September corn closed 2 cents lower at $3.25. This was 2 ¼ cents off the high and a penny and a half off the low of the day. The EIA report from the Department of Energy showed corn usage for ethanol up from a week ago at just under 93 million bushels of corn usage…up almost a million bushels from last week. The corn market had several days of higher closes after the August report was released but seems to be consolidating at this point. While the PF tour seems to be finding mixed results on corn yields for the states they’re touring, the trade seems ok with the rally stalling out for now. My gut tells me we could be range-bound for now, but at the same time, I’m watching to see if we can get a little inflationary bounce sooner or later. While I hope we do, I’m sure that will be more of a long-term situation than something we might see right away. I remain neutral to sales on new-corn unless a producer can definitively make these prices work while rewarding the market with old-crop bushels on this rally we weren’t expecting.
Down Corn – from Twitter
Soybeans – Soybeans were also rather ho-hum on the day Wednesday, closing without much fanfare. November beans settled up a quarter of a penny at $9.14. The close was 5 ½ cents off the high and 4 off the low of the day. The bean market certainly showed some life again on Wednesday but couldn’t keep the gains into the close. With another export sale posted of 192k metric tons, it shows the demand for US beans continues to impress the market. The ProFarmer tour has shown huge bean yields in every state they’ve been in, which goes along with most of what we’ve been saying for the last couple of weeks. The thing to remember is beans need good moisture to finish well and at this point, many areas are plenty dry. The forecast doesn’t seem to have much rain in it, so it’s possible the market might see support from the weather as even though we have the makings of a big crop that could get bigger, it likely won’t happen without good rain to finish.
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Matt Bennett
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