Old corn is down 3, new corn is unchanged and soybeans are up 4 to start the day.
Exports were very low this week without much interest in any of the core US products. Corn sales were 327,700 mt with almost all the sales coming from 50/50 with Japan and Mexico. Bean sales were 90,400 mt with a host of traditional buyers in, but zero for China. China did buy some new beans with 265,000 mt.
For the week ended Apr 9th, ethanol production was 941,000 barrels per day, down 3.5% versus a week ago, up 65.1% versus a year ago. Stocks were 20.5 mil barrels, down 0.6% versus last week, down 25.3% versus last year. Corn used was 95.1 mil bu versus 98.5 mil last week and versus the 97.2 mil needed to meet USDA projections.
The 10 day forecast in Brazil has some rain showing up next week in the South, 1-2 inches in isolated storms. Central Brazil will stay mostly dry with close to trace amounts forecast. This could be the beginning of a pattern change, with some of the first rains moving into Southern Brazil.
May corn futures touched 6 dollars in the overnight trade. Whatever happens today, is probably going to be the high for this. After the drop on Monday, the market has rallied about 40 cents in corn for the week. Beans are in the middle of their trading range that they have been holding since January. The funds continue to stay long. The bean position is on the small side with South America taking over exports and the risk of African Swine Flu holding that trade back. Corn futures are going to result in some new acres getting planted as new crop prices have rallied above 5 dollars.
Things are good for now and the markets should remain stable, but be prepared as any shift in demand and this thing will head south fast.
High Prices cure High Prices!
Have a safe day!