Grain Market Rally Loses Steam as Prices Begin to Deflate
Grain futures markets are facing pressure as prices have begun to deflate after a period of rapid growth. The recent rally in grain prices, which had been fueled by bullish sentiment, is showing signs of losing steam. According to Pro Farmer, the next few trading sessions will be critical for determining the fate of the grain market.
As of 6:00 a.m. CST on July 28th, December corn was up 1.75 cents, while November soybeans were down 4.5 cents. September soybean meal was off $0.90 and September bean oil hit a three-week low. The decline in prices is attributed to the lack of fresh fundamental news driving the market.
Dr. Michael Cordonnier, Pro Farmer's crop consultant, left his U.S. corn and soybean yield forecasts unchanged this week at 181.0 bu/ac and 52.0 bu/ac respectively. However, he noted that heat and dryness are becoming more of a concern for the corn crop.