However, lack of rain in the forecasts and predictions for higher temperatures would again raise production concerns. Corn still needs moisture to fill and August is a critical month for soybean production. Significant rainfall in June has reduced most of the drought worries in the markets. Prices could go lower. These prices suggest that, if weather after the fourth looks good, corn and bean prices could decline even more.
Demand appears strong.
Strong demand and hints of less than ideal weather could turn prices around. This situation could quickly pivot prices upward similar to what occurred last year. Time is running out for remaining old crop still held in storage. Current Central Missouri new crop cash bids are about equal to USDA's most recent projection of average prices for the 2000 crop and are at levels that would trigger LDPs. The LDP provides downside protection, at this point, for unpriced grain that must be delivered at harvest if prices continue to decline.