Hello - it has been a busy week and it’s only Tuesday!

After Friday’s surprisingly bearish USDA report, all I can say is that I really don’t believe it. USDA estimated US corn plantings at 97.4 million acres, up from its previous estimate of 97.28 million acres in March, and well above the average trade estimate of 95.34 million acres. That said, the corn market remains under pressure and will continue to trade these fundamentals over the next few weeks.

According to Jim Wyckoff, grain analyst for TheCropSite, this is historically a pivotal week for the grain market.

“How the grain markets close this Friday, after the 4th of July holiday, is going to be very important – a close near the weekly high is going to be bullish to suggest that we have put in market lows and can trend sideways to higher. However, bearish weekly low closes on Friday would suggest prices continuing to trend lower into the end of the summer,” Wyckoff said.

On Monday, December corn prices put in a new 2.5 year contract low and Tuesday will be a key test as it approaches the $5 level. It’s hard to believe that we might have seen the market highs for this season already?

USDA announced a soybean resurvey after last week’s report showed record plantings despite the slow pace of this spring’s planting. The survey timing - early June – likely reflects planned plantings, not actual plantings due to the weather.

To learn the impact of Friday’s USDA reports, click here.

Have a great week!