Markets opened mixed this morning with corn down 2 and soybeans up 6.
We are seeing some strength/support in the bean markets with weather concerns in southern Brazil and Argentina as they have limited if any rainfall over the next two weeks. Rumors of Argentina limiting export for corn continue to be discussed by their government. Roughly 10% of Argentina’s crop is stressed with 86-87% of the corn and soybean crop rated in the Good/Excellent category. The area under stress is expected to expand to at least 40% in the next two weeks in Argentina with no rain.
March futures continue to push the $5.95 level but so far have failed to close above it. We have been in a slight upward trend as the March futures have had a higher close in 9 of the last 13 trading sessions.
Spreads on the CBOT continue to disappear as the funds continue to buy the front months due to volume and liquidity. We have also seen basis levels widen over the past several weeks well into the summer months as end users continue to get covered up in the front months. Several end users across the Midwest have pulled bids until May/June timeframe as producers lock in sales.
I do not look for the markets to do a lot this week with them being closed on Friday and limited participants as the week rolls along due to holiday travel.
Reminder that there will be no markets on Friday December 24th.
Have a Safe Day!