Market Report: Corn and Beans Lower Monday

Corn traded higher in the overnight session but saw selling pressure during the day and closed lower to start the week. The nearby forecast is calling for high temperatures and frequent chances for rain. Along with the USDA July Supply Demand Report that will likely be bearish, traders were in a selling mood. For the report this morning, traders expect the carryover this year to be at 1.805 billion bushels. For new crop the average trade guess is 2.205 billion bushels. Those guess reflect an increase from last month of 97 million bushels for this year and 197 million for next year.

It was pretty much the same story for beans as beans closed Monday 2-7 cents lower. The longer term forecast is still calling for above normal temperatures early in August. That may have traders a little concerned as we all know the bean crop is made in August. Traders expect old crop bean carryover to drop by 18 million bushels to 352 million. For new crop traders expect  carryover to increase about 17 million bushels to 287 million. With traders expecting a bearish report even if the numbers are bearish maybe it will already be "in the market." We will find out at 11 this morning!