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Good morning,

 

Corn and soybeans are unchanged this morning and wheat is up 9.

 

An improved weather forecast for South America has been pressuring bean prices (old and new). Futures are at their lowest value in over a month. Corn prices appear to be stabilizing after setting new lows last week. The upside in corn looks to be very limited given the size of this year’s crop and the amount of unpriced corn still on farm coupled with a lack of demand so far.

 

Brazilian farmers have seeded 82% of the soybean crop down about 10% from the ten-year average.  The first crop corn is 65% planted versus 79% on the 10-year average.  The forecast continues to show heavier rains developing in the long-range timeline which will incentivize planting.

 

StoneX Brazil on Friday cut their 2023/24 soybean production estimate from 165.0 million metric ton (MMT) to 161.9 MMT, still above 157.7 MMT last season. First-crop corn production fell from 26.8 to 26.5 MMT this month, down from 28.6 MMT last year, with second-crop output seen at 97.3 MMT, down from 99.0 MMT last month and 108.4 MMT LY. Total corn production came in at 126.0 MMT this season, down from 139.2 MMT in 2022/23

 

Have a safe day!

 

Garry Gard

920-348-6844

ggard@didioninc.com