Rough week for corn trading at some of the lowest prices of the year. The July corn contract expired this week going into delivery at $7.43 ¾. The July contract was strong going into delivery with a $1.15 premium over the September contract. September corn fell 48 cents this week settling at $6.20. December corn fell 48.5 cents settling at $6.07 ½. Exports were slower this week with no reported sales, but shipments were ahead of pace. Outside market pressures were a major contributor to the selloff in corn. Planted Acres Report showed slightly higher corn acres with 89.921 million acres reported versus the 89.49 million acres reported in the March intentions report. There was a special note in the report that North Dakota, South Dakota, and Minnesota would be resurveyed in July because of how many acres were left to be planted at the time of the first survey.
Soybeans had a two-sided trade this week with September soybeans starting out at $14.30 with a high of $15.21 on Thursday after the report. Despite a nearly $1.00 gain between Monday and Thursday, September soybeans finished the week at $14.16 for a 14-cent loss on the week. November soybeans falling 9 cents this week with a final settlement price of $13.95. This is the 4th day November soybeans have closed below crop insurance values. Planted acres for soybeans were a surprise with 88.325 million acres reported versus March intentions of 90.955 million acres. Lower soybean acres were unable to stop the selloff, showing that fundamentals are not currently being traded.
Chicago Wheat did not escape the grain sell off this week. Fundamentally there was no reason for the sell off. Managed funds have already traded their concerns of the war in Ukraine and Russia is expecting a big wheat crop. There is concern if there is a worldwide economic slowdown wheat demand could ease. September Chicago Wheat dropping from $9.33 to $8.46. Wheat prices haven’t been this low since before the war in Ukraine started.
The 7-day forecast for much of the corn belt calls for light rains with above average temperatures. Long term weather models show less rain and continued heat through July. If this does materialize the early planted corn will have an advantage over the later planted crops. This could become a problem for soybeans as August is an important time for soybeans to get rain.