Consus Ag Consulting Afternoon Recap

Wednesday, July 2nd, 2025

After a two-sided start to the session, corn, soybeans, and wheat all worked to the upside by mid-session. Oversold technical indicators led to short covering ahead of the long weekend as the market will be closed Friday for July 4^th. While there will be normal hours tomorrow, many traders are extending the weekend into four days and will be out tomorrow. The current market is void of risk premium and this is getting the attention of more equity money managers. If they view this as a buying opportunity it may just be the catalyst we need for a rally. Updated weather models are showing heat for much of the US into the weekend, but this breaks down and is followed by rain, creating favorable crop conditions. This, along with limited fresh news, capped early gains.

At mid-session it was reported that the US and China had reached an agreement on US ag product trade. This included several frame contracts on commodities that President Trump will announce on a trip to Iowa tomorrow. Details on this are sketchy, but were enough to instigate short-covering in an undervalued market.