The corn crop was planted early and, with recent rains, many believe it now has the potential for very good or possibly record yields. This suggests that prices could go still lower, especially if yield prospects continue to grow. Harvest is months away and subsoils are still dry in much of the southern Corn Belt and in the South. The National Weather Service 30-day forecast for July predicts hot and dry conditions in these areas. Corn yields could still be hurt and soybean yield risk is even greater.
Low prices cure low prices.
That's another market saying that may be coming true. While weather and production potential have been the newsmakers , demand is also growing. This inversion suggests strong demand for cash soybeans. The USDA Supply and Demand Report also projects record demand for corn and soybeans with increases in both domestic use and exports. There is still a lot weather and production risk, which suggests the potential for more price rallies or declines.