The Good: The corn market dropped by 17 cents per bushel today as the weather in the Corn Belt was favorable during the long weekend. Market participants had moved to the sidelines last week before the July 4 holiday in the U.S. Rains over the weekend covered most of the northern Corn Belt region, while southern Iowa and central Illinois reported less than 5 mm. This is good news for the overall corn crop conditions improved during the past week with 74 per cent of the crop in good to excellent condition. This is the second best rated corn crop at this time of year in the past seven years. Unfortunately good news for the corn crop in the U.S. is bad news for prices this year.
The Bad: Spring wheat futures dropped by 10 cents per bushel in today’s trading action and closed the day at US$10.14 per bushel. The spring wheat contracts led the wheat markets lower with winter wheat contracts down by eight to nine cents per bushel. The weakness in spring wheat maybe temporary as crop conditions dropped by three per cent to 50 per cent good to excellent. This is the third lowest rated spring wheat crop in the past 10 years. The bad news is that markets decided to move lower in today’s trading action.
The Ugly: Canola markets had an ugly day with nearby futures dropping by C$22.90 per tonne to settle at C$698.80 per tonne. Vegetable oil markets were down today with soybeans dropping by 28 to 29 cents per bushel. Adding to the pressure in the canola markets was a drop of 1.2 per cent in the nearby soybean oil contract. European rapeseed futures were down by 1.65 per cent which added to the pressure in the ICE canola market. Most of the pressure in the soybean market came from the favorable growing conditions on the weekend. Soybean conditions on July 6 were unchanged at 66 per cent good to excellent.
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