Russia announced yesterday morning US time that they would not renew the Grain Corridor Deal. The reaction in the corn and wheat was the typical “Buy the rumor and sell the fact.” The rumor was Russia would not renew the deal. Traders bought wheat and corn based on the rumor of less corn and wheat available to the world marketplace. When the non-renewal was confirmed, it was already priced into the market. Again, another example of "the expectation of an event will move a market more than confirmation of the event.”
The next expectation is a smaller US corn and bean crop as the weather becomes drier and hotter into August. The expectation of a smaller crop will move prices more than confirmation of a smaller crop.
The nation’s corn crop is rated 57% good or excellent, as expected, which is 2% higher than last week. A year ago this week, it was rated 64% good or excellent and it yielded 173.36 bushels. USDA says this year's crop will yield 177.5.
The nation’s soybean crop is rated 55% good or excellent, 2% better than expected and 4% higher than last week. A year ago this week, it was rated 61% good or excellent and it yielded 49.55 bushels. USDA says this year's crop will yield 52.