Diverging Futures: Soybean and Corn Markets React Differently to Latest Condition Data

Soybean and corn futures are diverging as the next WASDE report approaches, according to Lane Dungan, Market Strategist at RJO Futures.

The divergence occurs because the yield dispute driving the grain complex is primarily a corn story, not a shared one, while soybeans are rallying on separate inputs.

Soybean good-to-excellent condition ratings fell two points in the latest weekly update, while corn ratings held steady. The futures market repriced both immediately after the data was released.

The 7.5 bushel gap between the U.S. Department of Agriculture's August corn yield estimate and the Pro Farmer Crop Tour figure applies solely to corn, giving it a clear driver for its rally.