Softer markets to start the week with corn down 5 and soybeans down 6.
Canada’s main crop came in above trade expectations in StatsCan’s December crop report on Friday, with all-wheat output at 21.7 MMT; that was 500k tonnes above the trade guess but still only steady with their previous projection, and their worst wheat crop since ‘07/08. Production of those six main crops (combined below) stands at just over 64 MMT for 2021, down from a record pushing 90 MMT in 2020 and the lightest output since the ‘07/08 season.
The forecast for South American weather looks unchanged from yesterday. Northern Brazil will have chances for 2-5 inches of rain this week. Southern Brazil and most of Argentina didn’t get much rain coverage over the weekend. Southern Argentina is expected to see .1-1.25 inches into Friday. Temps in Northern Brazil are below normal and temps in Argentina are heating up.
The USDA will release their monthly S&D report on Thursday. Trade expectations are for slightly lower stocks due to an increased ethanol demand number. 2021 production numbers will not be updated until the final report in January.
Look for the markets to continue their sideways trading range as we have nothing bearish or bullish going on in the marketplace.
Have a Safe Day!