The markets were lower today after a weekend of fairly reasonable rains. The western belt is now receiving a better flow of moisture and this is expected to continue over the next 10 day period. The crop condition ratings showed a 1 % decline week on week. This may offer a small bounce overnight and on Tuesday. The long term focus has shifted after the usda report. The market feels like it believes there is a ample supply of product. The global carry would argue for lower prices in the near term. Much lower in the long run if the weather cooperates and we witness a swift harvest. The demand base has been good and this will continue. I will comment on the concerns regarding north korea and the US. The Chinese relationship is feeling the concerns. However this has yet to hurt and demand. The end result in the US remains very well supplied as does the world. The market will feel the harvest pressure unless a weather event appears at this late date.
Be Well