Corn, soybeans, and wheat were up; cotton was down for the week.
Has a bottom been established in soybean and corn markets? The current low in the December corn contract is $3.50 ¼ established on July 12. The current low in the November soybean contract is $8.26 ¼ established on July 16. For corn, the supply and demand fundamentals paint a much more bullish picture than soybeans. For example, global corn stocks are projected down over 1.5 billion bushels year-over-year, while global soybean stocks are projected up 82 million bushels. Global demand for both commodities remains strong, however trade disputes continue to weigh heavily on agricultural commodities. Approximately 47% of US soybean production and 15% of corn production are exported annually, as such disruptions to global trade adversely affects soybean prices more than corn prices. At this point in time, a swift resolution to the trade war with China appears unlikely. Whether a bottom has been established in corn and soybeans will depend on further escalation of the trade war and how weather progresses between now and harvest. Currently, a stronger argument can be made for a bottom in the corn market than the soybean market. Continue reading at Tennessee Market Highlights.