CBOT corn, soy remain on downtrend amid beneficial weather

CNS Canada — Corn and soybean trends on the Chicago Board of Trade are remaining down as the market has seen little change from last week.

Both corn and soybeans in Chicago were weaker on the week ending Wednesday. Corn futures ranged 2.5 to three cents lower. Soybeans contracts ranged from 14 to 14.25 cents lower (all figures US$).

“The news is the same: Trends are down, weather is beautiful,” said Scott Capinegro, president of Barrington Commodity Brokers. “I guess we have to wait for Allendale’s numbers next week, and then the (U.S. Department of Agriculture) report if we’re going to continue the trend down to harvest, but rallies right now are hard to come by.”

The next report for monthly crop production from USDA is scheduled to be released Sept. 11.

“The trade is pretty non-eventful,” said Capinegro. “(Soy)beans should lose to corn like it has this week again, and (with) corn, we’ve been at a five-week trading range. About $3.58 to $3.81, there’s just nothing there.

“We all know big crops are out there, it’s just now how big — and the market definitely needs to make sure we continue to be very competitive in world markets for exporting.”

Harvest is underway in some Delta states including Texas, Mississippi and Arkansas.

“The yields that I keep on seeing are just phenomenal. So we’re going to have a big supply,” said Capinegro. “I think that the fringe areas of Texas, Kansas and Missouri are going to have better yields than they’ve had in the last three years by far. So they’ll make up anything that’s kind of going backwards up in North Dakota and South Dakota easily.”

Southern Illinois could potentially start its harvest within the next one to two weeks, he added.

Abundant precipitation in parts of the U.S. Midwest has been beneficial to corn and soybean crops.

“We’ve had a lot of rain, and it’s been probably one of the wettest Augusts that I can remember over the last four or five years anyway,” said Capinegro. “So it’s had to help corn and beans tremendously.”

Some soybeans are dealing with sudden death syndrome (SDS), but Capinegro said that’s an issue every year.

“Until there’s some kind of game-changer, trends are down,” he said. “Whether it’s going to be SDS problems in beans or an early frost, I don’t see anything else that is going to be a real game-changer.”

— Marney Blunt writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

 

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