The corn market today suffered from a better than expected crop condition rating of 73% G/E last evening when many traders thought the number would come in around 69-70%. Corn finished the day down 4.5 cents on the CBOT with cash corn on the Illinois river down 6-7 cents with a weaker basis. Barge freight has jumped about 80 pts all the way up to and over 400% with increased demand to move out the old crop ahead of good looking new crop. Corn ratings for this week are the highest since the record crop of 2004 with only Iowa lower than last year's record production. Corn pollination seems to be progressing nicely throughout the Midwest with temps staying in the 85-95 range and no 100+ readings in the corn belt. There is scattered talk of dry conditions popping up in the Eastern corn belt and that will be closely monitored as forecasts call for the highest temps of the year next week.
Soybean ratings were down another 1% and sit at 65% G/E providing support to new crop beans as they were up 3.5 cents and basis continues to be very strong on old and new crop. Not surprising, the rain plagued states of Iowa and Missouri have the worst rated beans at 69% and 44% respectively.
Wheat led the way higher today as serious concerns arise over drought and extreme heat in the former Soviet Union. We have seen reports that this year's drought is surpassed by only 5 out of the last 100 years! Locally, wheat harvest has almost finished with poor results on both yield and test weight.
Scott Meyer
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