The Good: The oilseed complex has a good day with soybeans leading the way. Soybeans jumped up 16.5 cents per bushel today on concerns about the dryness in the Corn Belt. The other concern is obviously the damage from the derecho that ploughed through the midwest last week. Soybeans are not likely to have suffered the bulk of the damage, but some yield losses will occur. The overall condition of the soybean crop dropped two per cent to 72 per cent good to excellent. The soybean chart is very friendly as the December futures moved back to the levels that were posted in early March. Markets have come to the conclusion that the production estimate in the August report may be the largest of the season.
The Bad: Corn conditions in Iowa dropped by 10 per cent this week as the derecho caused significant damage to the crop. This is the largest one week drop in crop ratings this late in the growing season over the past 34 years. Overall U.S. corn conditions dropped two per cent to 69 per cent good to excellent. The crop condition ratings were not a surprise to the market, which has become increasingly concerned about the damage to the corn crop. Concerns about the dryness for the end of the filling stage for corn also supported the market today.
The Ugly: COVID-19 deaths in the U.S. crossed the 170,000 during the weekend as the total number of infections head towards the 5.5 million case mark. The good news is that the number of daily cases is declining and has settled into the low 40,000 level. The number of deaths remains above 1,000 per day, but are also trending lower.