Stronger markets this morning with old corn up 12, new crop corn up 6 and soybeans up 19.
Dry weather for the Safrinha corn crop in Brazil is driving prices higher the last two trading sessions. Brazil raises two crops of corn, the first is primarily used for domestic feed and ethanol. The Safrinha crop is mostly sold for export. The shrinking of this crop will make the World export market a tighter place for corn.
The 10 day forecast is still very dry for Central and Eastern Brazil. Second crop Brazilian corn is entering the critical stage of development and the crop needs rain now. Temps will be in the 80’s-90’s, not excessively hot. Western and Southern Brazil will see a chance of close to an inch of rain in the next week. Argentina has stayed wet during the beginning of their harvest.
The Fund position for corn could be at a new record high today. The bean position is pretty small in comparison. Markets take turns on bull runs and this one is all about corn stocks and acres. South America is able to supply the World with beans, but weather has their corn supply in question. Planting pace is really going to pick up over the next week which should put some pressure on the markets shortly.
Have a Safe Day!