Tidbits, Wet Weather & Markets, Pre-Hedging, August Crush, Black Sea, Export Sales 10/2/26
Tidbits
After today, the Corn Belt will be mostly rain free for the next ten days. By the middle of next week should have a good “handle” on Corn Belt yields. Will harvest progress pressure corn and bean futures? It might pressure beans because of good yields, but we expect corn yields to be supportive. Farmers will not be selling so much next week to pressure the market, but the psychology of seeing good harvest progress will provide overhead resistance.
Pre-hedging is a term that describes what merchandisers do late in the CBOT trading day to hedge the bushels they expect to buy after the CBOT closes and before the CBOT reopens. Every day during harvest, merchandisers estimate the number of bushels they will buy while the CBOT is closed and sell that many bushels in the futures market to hedge the risk of price change when the CBOT re-opens.
Now that the futures market trades 18 hours and 15 minutes a day, the only day one needs to be concerned about pre-hedging pressure is on Friday afternoons before the weekend during harvest when weather is clear.
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