Grain markets open at 9:30 a.m. CT following yesterday’s one-day break. Historically, today is an important day for the market, as trends are known to accelerate or reverse following the July 4 holiday. Weather is on the top of traders’ minds, but the surging dollar index could trim investors’ risk appetite.
Corn is called to open 10 to 15 cents higher due to the spread of drought during the key pollination phase.
• Corn is pollinating under very stressful conditions. Much-above-normal temps are expected across the Corn Belt into the weekend, with very little meaningful rain in the near-term forecast.
• The Drought Monitor shows 76% of the contiguous U.S. is covered by drought, which includes nearly all of the major growing regions of the country.
• The Food and Agriculture Organization (FAO) of the United Nations slashed its U.S. corn crop estimate by 25 million metric tons (MMT) to 350 MMT.
• Brazil’s supply estimating agency Conab raised its corn estimate for the country by 1.67 MMT to 68.48 MMT, and raised its export forecast by 1 MMT to 12 MMT.