Corn is showing a small bounce this morning after the recent selloff. Currently corn is up 5 while soybeans and wheat are up 6 and 22 respectively.
The lack of export business has been weighing on the markets and will continue to do so well into the spring and summer months unless there are weather issues in South America.
Brazil exported a record 6 million tons of corn in November, bringing the year-to-date total to 38 million tons, almost twice as much as the 20.6 million tons shipped in 2021. Brazil is expected to harvest a record 126 million tons of corn, according to the USDA.
Four vessels loaded with Brazilian corn are currently in route to China and five more should sail to China soon, according to the shipping agency Alphamar Agencia Maritima. Additional vessels waiting to load may also head there, pushing total Brazilian corn shipments to China past 1 million tons for the year. Historically an importer of American and Ukrainian corn, China’s appetite for cheaper and abundant Brazilian supplies are taking a toll on US sales. Export inspections of American corn of 6.3 million tons are down 33% so far this year, pressured by a dry Mississippi River that is raising logistics costs and helping to keep supplies too expensive for importers.
Producers should take advantage of todays bounce to make any additional 2022 sales they have to make. We are stuck in a 40-50 cent window and trying to pick the high is going to be tough. I would advise making small sales thruought the winter to keep bins cored and cash flowing. New crop sales for 2023 should not be forgotten and putting some sales on at current levels is not a bad idea.
Have a Safe Day!