We are offering Free DP right now on Corn and Beans.  

At this time Open Storage can be converted to Free DP.  Priced by August 31,2021

July 28, 2021 

September corn futures finished today's session 1/2 cent lower $5.49 1/4, November soybeans were 1 1/2 cents higher at $13.61, and Chicago September wheat rallied 14 1/4 cents to close at $6.88 3/4. The US Dollar was steady, energy was firm, and the equity market was mixed.

After a weaker overnight session, futures opened the day trade on the positive side. Futures were on both sides of unchanged throughout the session as month end positioning started to develop. Conflicting weather forecasts added to the choppy tone of the market as did their expected impact on crop development. Investors were more interested in the outside markets which tempered activity in all commodities. Wheat was the leader of the market taking support from poor tour results from the Upper Plains. 

The spring wheat crop tour is taking place and confirming the poor crops that have been publicized. It is no surprise that North Dakota is in very poor shape with a spring wheat yield forecast of just 29.5 bushel per acre from yesterday’s findings. This is a sharp 32% decline from the five-year average. It is also believed that some North Dakota wheat fields will go unharvested due to poor stands.  

Water levels continue to decline in South America. This is most noted in the Parana River in Argentina where water levels are the lowest in 77 years. Even with dredging this is hampering shipping out of the country. The next chance of improving this situation is this fall when the rainy season gets underway. 

There are some doubts being cast over when this year’s rainy season will begin in South America. Typically this comes during October. We are seeing La Nina indicators strengthen though which may delay the start of the rainy season, same as it did last year. This caused the drought that severely cut production in Argentina and the Safrinha crop in Brazil. It is not out of the question that farmers in Brazil could delay active planting until rainfall predictions are more known. 

The ongoing drought conditions in the United States also remain a market factor. Even with recent rainfall a reported 26% of the main US soybean production region has been drier than normal over the past 90 days. This is the highest percentage in the past seven years. Field scouts in these regions claim what rains have fallen have come at opportune times though and benefited the soybean crop. 

Trade continues to monitor weekly export loadings as we start to near the end of the marketing year. Through this week the United States has loaded out 2.4 billion bu (bbu) of corn. While this is a 64% increase from a year ago, the recent shipment pace is not high enough to reach the yearly USDA projection. With five weeks left in the marketing year loadings will need to average nearly 80 million bu per week.