Grains Mixed, Yet Concerns Remain over Corn and Soybean Prices

Soybean Prices Hit New Lows

Commodities took a turn on Friday, with row crops ending lower while wheat, cattle, and hogs gained traction. Notably, both new-crop corn and soybeans reached new lows, prompting questions about future price trends.

Crop Conditions and USDA Expectations

Despite strong crop conditions, analysts anticipate the USDA may increase corn and soybean yield estimates in its upcoming Monday report. This uncertainty, coupled with the lack of concerning Corn Belt weather forecasts and weak US demand, has cast doubt on the bullish outlook for new-crop corn.

Recent Price Trends and Bullish Outlook

In recent months, corn and soybean prices have shown a downward trend. While Thursday's new lows raised concerns, the WASDE report released that day provided some positive news, estimating bullish ending stocks for corn, neutral stocks for soybeans, and bearish stocks for wheat. However, the current corn stocks-to-use ratio of 138 remains a significant concern, marking the highest old crop corn ratio for the May WASDE.