The observations from the crop tour along with the weather forecast will be the focus of the market this week. With the uncertainty on yields this year, crop tours will gain a lot more attention in the market, according to Doug Werling, with Bower Trading. “The corn market stabilized at the end of the week as many in the trade were stepping back and waiting to see what the crop tours had to say about yields,” he says. Werling added that some in the trade will wait to see what yields are when the combines start running next month. In the meantime, it will be a rather volatile market atmosphere.
Another factor that will be on the minds of the market is the dryness that is gripping Corn Belt. Werling stated, “Many of the areas in Ohio, Indiana, and Illinois have not seen a lot of moisture since the middle of July and the forecast does not show a lot coming.” He said even parts of Nebraska and Iowa are getting very dry, “The drought map is expanding and that is going to put a lot of stress on crops.”
Going forward, Werling says the weather will set the tone for the soybean market as we move into September, “We did not get things planted here in the east until very late. Soybeans don’t really like having wet feet, and that is what they had this spring. While they can handle some stress, but if they don’t get rains to finish them out then you are messing with test weight and pod fill.” He added that weather in early September will have some impact on corn but is more of an issue for soybeans.
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