Markets opened lower again this morning with corn down 3 and soybeans down 14. Yesterday the markets recovered from the early selloff with corn posting a 4 cent gain while soybeans closed 5 lower.
USDA report Thursday. Traders do not look for any big changes to US corn, soybean or wheat 2020 balance sheets. Conab SA crop estimate is also out Thursday. Trade estimates have Brazil corn at 109 mmt vs USDA 110. Soy 132 vs 133.
Scattered showers are falling across the Northern 2/3rds of Mato Grosso. Rainfall totals are from .5-1.5 inches. These rains are much less than normal, this is a time when Mato Grosso sees triple that amount of rain. The coverage of this rain event is disappointing. There will be another chance in a couple days for another .5-2.5 inches. Southern Brazil and Argentina will remain in a dry trend all the way out till Christmas.
Look for more days of trading like yesterday leading up to Thursdays report. The market should be supported ahead of the crop report, and the continued dryness in Southern Brazil and Argentina.
Have a Safe Day!