The week started with markets showing a degree of firmness which evaporated later in the day with CBOT markets moving towards the close in a very lacklustre fashion as another “no news day” failed to provide additional fodder for the bulls.

Nonetheless, traders are waiting for Wednesday’s USDA crop production report. Average trade estimates of corn yield stand at 120.6 bu/acre, marginally below the last official estimate; average trade estimates for soybean yield are also marginally lower than USDA figures at 35.8 bu/acre. The market is likely to trade in a narrow, choppy range until the figures are released then, hopefully, find some direction once again.

Our discussions with colleagues closer to the action in the US speak of very poor early corn yields in some areas, admittedly the only reliable estimate of yield will come only when the crop is fully harvested.

We will be watching the progress of the US harvest with keen interest in coming weeks.