Despite the wonderful weather we are currently experiencing, the markets are trading lower this morning. Corn is down 2 and soybeans are down 4 to start the week. Corn and soybeans are currently following wheat lower. The wheat market is trading lower on ideas that the winter wheat crop can be saved by the widespread rains that are expected to come late this week and into the weekend. Experts are also expecting that this past weekend’s freezing temperatures are not expected to cause much damage to the winter wheat crop.
Reports that soybean production out of Argentina, Brazil and Paraguay is projected to be 6.0 billion bushels, or 37% larger than the record US 2017 soybean harvest of 4.3 billion! With the expectation of US producers planting more acres to soybeans this spring (when it does come), I expect soybean prices to drift lower making the return on corn greater.
Have a Safe Day!