Notwithstanding isolated pockets of dryness here and there, US growing weather is pretty much ideal for USA corn and soybeans as temperatures cool off following the hot and wet July. Crop conditions are rising and with it expectations for US corn and soybean yields. The good news is that even as the supply side of the balance sheet is increasing, demand remains robust with strong export sales to China. Another large flash sale to China this morning for corn shows progress is being made toward Phase 1 Trade Agreement commitments. Here is the announcement from USDA-FAS:
Private Exporters Report Sales Activity for China and Unknown Destinations
WASHINGTON, July 30, 2020-Private exporters reported to the U.S. Department of Agriculture the following activity:
–Export sales of 1,937,000 metric tons of corn for delivery to China during the 2020/2021 marketing year; and
–Export sales of 130,000 metric tons of corn for delivery to unknown destinations during the 2020/2021 marketing year.
The marketing year for corn began Sept. 1.