July corn was trading near 11 cents higher and December up 13 into 7:30 AM central time. Outside market forces look slightly supportive this morning with a bounce in the US stock market and a weaker US dollar. China corn futures were up 1.4% overnight. The short-term forecast shows some rain chances for northern Illinois and growing areas north and west of this region but to the southern and eastern sections of the Corn Belt, mostly hot and dry weather looks stuck in place for the next two weeks. Soil moisture is already very short in the southern half of Illinois, much of Indiana and Ohio and these areas may be pollinating into late June. This is a major concern for the market. The weekly Corn Conditions report showed that just 63% of the crop was rated in good/excellent compared to 66% last week and 70% last year. The 10 year average for this time of year is 68%. The lowest was 40% in 1988. Nebraska slipped 8% to 62% good/excellent while Indiana came in at just 37% from 49% last week, 55% last year and 61% as the 20-year average. December corn closed sharply higher yesterday and is already up as much as 42 cents from Friday's close. Traders continue to be concerned with the above average temperatures and below normal precipitation in the eastern Corn Belt. Furthermore, dry conditions in the North China Plains are offering support as well. Weekly export inspections came in at 24.7 million bushels which was above trade estimates of 16-21 million bushels. Crops in Indiana and central Illinois seem to be turning quickly. In Effingham, our personal noted a shift in color from dark green to lighter green in just the past few days with some 3-4 feet corn leaves turning yellow. Some fields are beginning to tassel. Heat, lack of rain and high winds are sucking moisture from the topsoil and beginning to significantly reduce yield potential.
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