The Crop Progress report on Monday, July 10th was bullish for corn, spring wheat, and soybeans. G/E rating were down for all three and P/VP were higher. The July weather forecast suggests continued hot and dry conditions to much of the northern plains and western corn belt. Until these areas see relief due to moderate temperatures and increases precipitation, the markets will most likely chart higher.
The WASDE on Wednesday, July 12th does represent a potential bump in the road for the bulls. The USDA is historically slow to change yields. The market may be trading a 165 or lower yield in corn right now but the USDA is more likely to bring yields down to 168. Same goes for soybeans. Many in the trade think soybeans are about a 46 to 47 yield right now but the USDA may not even move it from the trend line yield of 48 until the August WASDE. In our opinion at Turner’s Take we think any sell offs due to a July 12th WASDE bearish surprise for corn, soybeans and spring wheat is a buying opportunity as long as the weather remains hot and dry.
To hear my in-depth thoughts on our positions in corn, soybeans, and spring wheat please click here to listen to Turner’s Take Podcast or to read them when published please click here to sign up for Turner’s Take Market Alert
Below are the charts that go along with Turner’s Take podcast. We remain bullish on corn, soybeans, and spring wheat. For detailed trades and positions please see Turner’s Take Market Alert.
December Corn
Nov 17 Soybeans
Nov 17 vs Nov 18 Soybeans
Dec 17 Spring Wheat
March 18 vs May 18 Spring Wheat
Sept 17 KC vs Sept 17 Chicago Wheat
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