Corn closed the session lower after both the July and December contract traded near a 15-cent range. Conditions are technically overextended and overbought, making corn futures vulnerable to short-term corrective action. Minor support for the July contract is noted at $4.46 ½, $4.42 and then $4.34. As of midday, funds were estimated to have sold approximately 6,000 contracts of corn. Yesterday afternoon, NASS released new planting progress and condition ratings for the U.S. corn crop. Planting was estimated at 92% complete, which fell in line with market expectations, and compares to 83% a week ago, 100% last year, and a 100% 5-year average. In addition, the corn crop was rated at 59% good/excellent, which was in line industry estimates and unchanged from a week ago.
Weather data indicates the month of June is on track to be the 11th straight month of above normal precipitation, also making the last twelve months the wettest for the Corn Belt in the past 125 years. Currently, the forecast for the Midwest calls for average to above average rainfall continuing over the next 10 days, with average to below average temperatures. However, talk is circulating that a warmer and drier trend may evolve towards the tail end of the month and into early July.
Soybean futures closed the session mixed. Weaker corn and wheat futures weighed on prices, despite news today that U.S. & China trade negotiators will resume talks in front of the G20 Summit when President Trump and China’s President Xi are set to meet later next week. Yesterday afternoon, NASS released new planting progress for the U.S. soybean crop. Bean planting was estimated at 77% complete. That was slightly below the average trade estimate of 79% and compared to 60% a week ago, 96% last year and a 93% 5-year average. The first soybean condition rating will likely be released next Monday. The late plant date has passed for beans in the west and the east will see their date come up on June 20th. Cool/ wet conditions are starting to shift talk from corn to soybeans with the possibility that unplanted bean acres will increase. In addition, concern is building over what impact the current weather conditions will have on this year's yields.
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