As we enter the first month of the new marketing year, 2020/21 soybean exports are expected to continue at a blistering pace thanks to large buys from China during the last quarter of 2019/20. This activity fueled an impressive late-August rally in soybean futures, which has closed higher now for ten straight sessions.
According to the U.S. drought monitor update on Sep. 3, severe to extreme drought conditions are being felt in western Iowa. The northern portions of Illinois and Indiana are also reporting abnormally dry to moderately dry conditions. The good news is the forecast is calling for area-wide rain in the next seven to ten days. However, we are into September, and many soybean fields have likely been pushed into maturity sooner due to the dry August weather.