Market Overview
Turnaround Tuesday eventually showed up in the grain trade, with corn and soybeans recovering after Monday’s sharp selloff.
The rally was slow to develop overnight, but deteriorating crop ratings and continued concern across the western Corn Belt helped bring buyers back into the market. Wheat failed to follow, however, as traders weighed the possibility of renewed negotiations surrounding Russia, Ukraine, and Black Sea grain movement.
Livestock futures also rebounded sharply, led by nearby live cattle and feeder cattle contracts.
🌦️ Crop Conditions and Weather
Monday afternoon’s crop ratings showed a meaningful decline in both corn and soybeans.
Weekly ratings fell:
Corn: Down 4% in the good-to-excellent category
Soybeans: Down 3% in the good-to-excellent category
The concern is not only that good-to-excellent ratings are declining. The poor and very poor categories are also increasing, signaling that crops across the western Corn Belt are beginning to show real heat and moisture stress.
Forecasts currently show a chance for rain across western growing areas late this week, particularly Friday.
That rain will be important because heat is expected to return shortly after the beginning of August. Missing this next rainfall opportunity could create a much larger
