Corn is up 1, soybeans and wheat are bot up 5 to start the day.
Markets were lower yesterday as the market adjusted to various changing conditions in Argentina. The devaluation of the peso from the 365 level to the 800 mark was an aggressive move. Originally it was reported that export taxes could be removed but taxes went higher in the near term to help the government raise funds with the promise to back off down the line. This means that going forward the Argentinian crop is more likely available to world buyers without special conditions like the ‘soydollar’ program to move product. If this continues, it will keep a bearish vibe in the markets especially with the potential size of this years Argentina crop.
Brazilian weather will see a heat wave over the next 5 days. Temps will be in the 90’s to 100’s. Rain will be limited in 2/3rds of Brazil. The heavy rains are in the South down in Argentina. The forecast for central and northern Brazil still advertises rain across the northern areas late next week. The hot temperatures are also expected to break by around Tuesday.
Weekly exports released this morning showed corn at 55.8 million bushels, which is slightly above the 10-week average of 51.9 million. The negative news in corn exports is the actual shipments. Today’s report showed that only 35% of corn sales have shipped. This is concerning to me because I believe most of the sales that we have on could be cancelled in the coming months. These recent flash sales are only an insurance policy for the foreign buyers if the South American crop is smaller than projected. If South America has a decent crop, these current sales will be cancelled or bought back and replaced with cheaper Brazilian or Argentina corn.
Have a Safe Day!