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As traders anticipate crop ratings dropping, the CME Group’s farm markets rise Monday.
In early trading, the Sept. corn futures are 4¼¢ higher at $3.28½. Dec. corn futures are 4¾¢ higher at $3.42¼.
Sept. soybean futures are 10¢ higher at $9.07. November soybean futures are 10¢ higher at $9.08½.
Sep. wheat futures are 9¾¢ higher at $5.09¼.
Sep. soymeal futures are $3.10 per short ton higher at $294.90. Sept. soy oil futures are 0.29¢ higher at 31.35¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.03 per barrel higher at $42.21. The U.S. dollar is lower, and the Dow Jones Industrials are 38 points higher.
On Monday, private exporters reported to the USDA export sales of 130,000 metric tons of hard red winter wheat for delivery to unknown destination during the 2020/2021 marketing year.
The marketing year for wheat began June. 1.
Al Kluis, Kluis Advisors, says that crop condition ratings could begin to fall.
“After last week’s storm in Iowa, many private trade estimates are now starting to move lower,” Kluis told customers in a daily note. “The USDA Crop Progress report today will show corn conditions steady to 2% lower and soybeans steady to 1% lower than last week. The hit in the Iowa crop ratings will be enough to take the entire national ratings lower.”
He added, “Watch the extended weather forecasts. The weather outlook is now for seasonal temperatures and dry conditions for the next two weeks. Based on this forecast and the recent severe storm damage (not just in Iowa but across much of the Corn Belt), last week’s USDA yield forecasts may be the highest we have this year.”