The day after the crop report started with corn displaying a degree more strength than either wheat or soybean complex markets. A combination of bullish USDA data and reports of corn yields which fail to excite have conspired to add to corn’s gains. We have a slew of private forecasts in advance of next week’s USDA crop production report and no doubt traders will be keeping an ear to the ground in an attempt to be one step ahead of the market going into next week.

Soybean yields, whilst variable, would appear to be a little better than expected. The larger than expected old crop stocks reported on Friday are limiting gains and indeed leading to losses. The precursor to a rally will most likely be either greater exports or worse yields.

Wheat markets have eased despite further escalation of Russian domestic prices, to record levels, and little in the way of offers from the Black Sea region. French origins would appear to be globally the most competitive and Matif wheat fell today! Rainfall prospects across Australia’s wheat belt, Argentine regions and the Black Sea winter wheat growing regions do little to bolster confidence going forward.

Short term price pressures, in a downward direction, are clearly driven by current harvest pressures. These conditions will soon be over, as harvests are completed and crop output know, at that time the potential for the bull market to resume will once again emerge.