Grains turned higher overnight and finished the morning trade solidly higher. Outside markets were also reversing course from the two-day hammering they took post-Brexit.
On Monday after the close, USDA’s crop progress report showed the US corn crop holding firm at 75% good-to-excellent, unchanged from last week, while soybean conditions slipped to 72% this week versus 73% last week. Winter wheat harvest was speeding along with 45% of the crop cut versus 25% last week.
In overnight news, Egypt said they had enough wheat in their strategic reserves to last until January 2017 and that they have bought 5 MMT from local farmers, more than the 4 MMT they expected to get this season.
For weather, the 6 to 15 day has trended warmer, with mid 90s or better mainly focusing on the Plains, Delta, and southwest Midwest. Some models are looking for 100s late in the 6 to 10 day into the heart of the corn belt but other models don’t. Longer-term forecasts out a month show warm weather in the corn belt, with the biggest risks in the northeast 1/3 of the belt.
U.S. stock index futures rose sharply on Tuesday as investors rushed to pick up Brexit-hit stocks after Wall Street crumbled under fear and uncertainty to its worst two-day fall in 10 months. Crude oil was also up sharply trying to recover from steep losses while the US dollar reversed course to trade lower.