Quiet markets to start the week with corn up 1 and soybeans up 2.
Argentina’s weather forecast looks drier this morning sustaining concerns about the size of its corn and soybean crops. The smaller corn crop should directly impact U.S. corn exports later this year, but the Brazilian crop is just now being planted. Argentina’s soybean crop is increasingly at danger of slipping below 40 million metric tons, with some private estimates already in the mid-30s. I believe it’s too early in the growing season to go that low yet, but I have no doubt that we could end up there or even a bit lower if drought pressures continue. U.S. soybean exports should drop off in the weeks ahead, while corn shipments rise slightly.
The military shot down three suspicious objects threatening U.S. airspace over the weekend, in addition to the Chinese balloon shot down last week. The U.S. Air Force says that it has not yet been able to identify the three objects shot down over the weekend, but the incidents continue to create public outcry against China’s spying activities. The latest object shot down on Sunday was floating at around 20K feet over Lake Huron. An object was shot down near Deadhorse, Alaska on Friday, and another over Canada’s Yukon on Saturday. We do know that the first one shot down off the South Carolina Coast last week was of Chinese origin, with listening devices suspended from it, although China claims that it was collecting weather information. Regardless, the increased incidences are pushing tensions between China and the United States to high levels once again. It has not thus far had a direct impact on the trade of commodities, but it does contribute to China seeking alternative sources to reduce its dependency on U.S. sources as much as possible.
Have a safe Day!