Maturity of U.S. corn improved during the latest week but remains well behind the average due to a wet spring, according to the crop progress report. USDA said the corn crop was 21 percent mature, up from 12 percent last week but off the five-year average of 55 percent. Soybeans dropping leaves, a sign of maturity for the crop, was higher at 40 percent, an increase from 17 percent last week.
The dollar hit a near two-week high against the yen on speculation the U.S. Federal Reserve will announce "they're going to start removing stimulus" measures. Oil prices dived 3 percent on Monday after the dollar rebounded and soybeans fell as much on fears of a big crop, combining in a broad commodities sell-off.
Traders note that the GFS model still is calling for a light frost/freeze in the northern Dakotas/MN toward the 1st weekend in October but other private forecasters are dismissing this model. They believe that the GFS model is wrong and no frost will occur. Even if frost does occur the 1st week in October, the market believes it will cause more of a problem on quality than it will with quantity (with the exception in North Dakota where it will do both).
Chris Spurlock
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