WELCOME TO CFE

7-21-2017

Good Morning!

Corn futures are trading 6 cents lower and soybean futures are 9 cents lower with rains moving through the western Midwest.

Last week’s corn and soybean future high’s is going to be short term resistance. December 2017 corn futures traded to $4.17 and November 2017 soybean futures trade to $10.47 last week. This is the first time we had traded above the February 2017 future highs. This type of run up in the market needs to be rewarded.

Next week’s crop condition report should show continued deterioration of the weekly good to excellent ratings in corn and soybeans .There has been moisture received this week but only in scattered areas of the western Midwest.

These lower ratings are the norm through because of the time of the growing season with the western Midwest in the pollination phase of the growing season

Soybean height is being questioned for this time of the calendar. Remember tall soybeans does not guarantee high soybean yields.

The ethanol industry continues to grind corn at a record weekly rate and this should justify the USDA to increase the bushels of corn used for ethanol industry by 200 -250 million bushels in this grain fiscal year.

The weather forecast will continue to indicate which way the corn & soybean futures will perform until the first week of August.

Mike R.