Monday June 7th, 2010

Corn continued on its downward slide today, closing down over 4 cents. In the past 6 trading days corn has lost 10%, the largest drop since January as the prospects of favorable weather conditions, rising dollar and falling crude pushed it lower. The USDA weekly crop progress report showed good to excellent rating of 76%, unchanged from last week, analyst were looking for a 1% to 3% improvement this week.

Soybeans ended the session fairly flat, as prices were unable to launch an aggressive push in either direction amid lack of news as well. The USDA reported their first weekly crop conditions for soybeans tonight at 75% good to excellent, analyst were predicting between 65% to 75%.

Heavy thunderstorms focus on key areas of the Corn Belt through Wednesday, further boosting topsoil moisture for sufficiently moist vegetative corn. A notably warmer pattern begins later this week and affects the Corn Belt, but dryness does not coincide with warmth as thunderstorms redevelop during the weekend.

Chris Spurlock