- Chicago markets started higher but failed as fund selling on the rally was noted as midwest cash grain movement grew. Old crop grain selling on the back of rains in the northern midwest encouraged farmers although their southern counterparts are less happy with rainfall amounts and are reporting some crop stress. Eyes are clearly on coming weather and how much heat/dryness is on the cards in the coming week.
- It feels as if the market is already trading reduced yields (below trend), the question being are we to expect a decline from here or see improvement with better rainfall? Current pricing in corn suggests a corn yield somewhere around 11-14 bushels/acre below trend at present, which would equate to 154-157 bushels/acre. Markets appear to be assuming warm/dry conditions will persist into July. Soybeans are much better able to withstand adverse conditions as we well know and have witnessed in previous years.