DTN reports:

New-crop contracts of corn, soybean meal, KC wheat and Minneapolis wheat all posted their lowest weekly closes Friday as crops are largely thriving in this year’s good weather. The September U.S. Dollar Index added to some of the bearish pressure, trading up 0.66 after the U.S. Labor Department reported a lower unemployment rate in July.

Wheat:

September KC wheat fell 1 3/4 cents to a new contract low of $4.15 1/2 Friday, while the bearish case for wheat prices finds no opposition to offer support. This week heard about higher private wheat crop estimates for Russia and Canada and a forecast for beneficial rain in Australia. The latter stage of the HRW wheat harvest is also going well with high yields reported in the Dakotas. World wheat production is looking good overall and USDA will probably increase its estimate of both, U.S. and world ending wheat stocks in Wednesday’s WASDE report. Wheat exports are up 9% in the new season from a year ago, which is slightly helpful. The worst part of wheat demand in 2020-21 is that feed wheat will find it difficult to compete with abundant supplies of cheap corn. Spring wheat harvest may have been interrupted Friday as rain moved across part of the Dakotas, but the 7-day forecast is mostly dry and favorable for further progress. September Minneapolis wheat closed down 1 1/2 cents at another new contract low of $4.94 1/2. Fundamentally, the bears are currently in control with no major production problems seen in 2020-21. From a technical view, the trend has turned sideways for cash SRW wheat and is down for cash HRW and HRS wheats. DTN’s National HRW Index closed at $3.96 Thursday, breaking below support at $4.00. DTN’s National SRW Index closed at $4.80, down from a 3-month high.

Corn:

December corn ended down 3 cents at $3.20 3/4 Friday, a new weekly low with numerous bearish concerns weighing on prices. Friday’s weather map shows light to moderate showers in the northwestern and southwestern U.S. Plains, rain that is expected to expand across the Corn Belt the next seven days. Western Iowa, however, will only see light amounts and remains the sore spot of drought in the Corn Belt. The 6- to 10-day forecast expects above normal temperatures with below normal precipitation in the Western Corn Belt, mostly normal precipitation in the central and Eastern Corn Belt. There is a risk of yields being limited in the Western Corn Belt, but Wednesday’s WASDE report will likely show an increase in USDA’s 15.0 billion bushel (bb) crop estimate, possibly to 15.3 bb or higher. The expectation for a large fall harvest is bearish enough, but corn demand is also a concern with ethanol production limited and exports down 17% from a year ago. Fundamentally, it is difficult to find a bullish argument for corn prices as we approach harvest and that leaves prices vulnerable to a lack of support. Technically, the trend in cash corn remains sideways with numerous bearish factors pressuring prices lower. DTN’s National Corn Index closed at $2.90 Thursday evening, near a 2-month low and 22 cents below the September contract. Outside markets lean bearish Friday with the September U.S. Dollar Index trading up 0.66. The U.S. Labor Department said nonfarm payrolls were up 1.8 million in July, more than expected. The U.S. unemployment rate fell from 11.1% in June to 10.2% in July, showing some recovery from the economic hit suffered in the second quarter.