top of page
If You Haven't, Try Our Daily Grain Market Reports FREE for 30 Days!

Market Commentary 7/4/22

Jon Scheve with weekly market commentary made on July, 1, 2022

Corn USDA Acreage Report The USDA only increased corn acres by 500,000 from the March survey. This is not real bearish because the market has been pushing new crop corn values to levels encouraging a lot more corn acres be switched over from beans this spring. Evidently, wet weather in North Dakota and Ohio this spring prevented a lot more acres being switched to corn. Weather This week I drove through southern Minnesota on I-35 to Des Moines and west along I-80 to Lincoln. Iowa’s corn is at least one week behind normal, which should push pollination dates back until after July 20th. This means even after the long 3-day weekend, the 2-week weather forecasts will not yet reach the critical growing time period. Current longer-term forecasts suggest weather should be close to normal though. If this happens, the current 177 yield projected by the USDA could be achieved. However, even with normal demand, that might not be as bearish as the market has been trading the last two weeks. Ukraine The 800 million bushels of corn still trapped in Ukraine will continue to be a factor on world demand. Brazil, Argentina, and the US are the only countries that have enough grain to help meet the global demand needs should Ukraine not be able to export grain by the Black Sea. If the US would be called upon to replace just 1/3 of the grain trapped in Ukraine, US carryout would be extremely tight and higher prices would be necessary to ration demand. Bottomline For Corn It seems the market has forgotten about the war in Ukraine and is instead focusing on a worldwide recession fear. However, while outside markets are going down, ultimately everyone must still eat. Long term fundamentals for corn show potential for higher values. Beans USDA Acreage Report USDA’s biggest surprise was planted bean acres dropping 2.7 million acres from the March survey projection. Supply & Demand If the country grows trendline yields and average demand can be achieved, carryout could drop to its tightest level since 2014. Bottomline For Beans This report should put a floor under bean prices until Christmas. The fundamental upside potential for beans looks very positive. With 2.7 million fewer acres planted compared to March projections means any August weather issues could cause a price explosion. Prevent Plant Acres The USDA announced they will resurvey Minnesota, North Dakota, and South Dakota again in July to reconfirm the acres planted. These survey results will become available in the August 12th report.

Jon Scheve Superior Feed Ingredients, LLC

9358 Oak Ave Waconia, MN 55387

Recent Posts

See All


Commenting has been turned off.
bottom of page