Valentine’s Day and there is no “Love in the Market”! Corn is trading 3-4 lower while soybeans are trading 12 lower.
Talk this morning of surprise cancellations of US soybean sales to China and unknown destinations has the markets reeling. No confirmation of why the sales were cancelled, but some speculation that China space for soybeans is full and the spread of African swine fever may be reducing hog herd numbers more than China was expecting or reporting. This could reduce the demand for Chinese soybean imports to below 85 mmt.
Private analyst Informa released their 2019 acreage estimates and has corn acres at 91.6 million which is up 2.5 million from 2018. Soybean acres are estimated at 86 million, down 3.2 million from 2018. This comes as no surprise to this trader who has been hearing higher corn acres from farmers and seed sales reps for the last several months. Unless mother nature changes their plans we will see a bump in corn acres this year and 2.5 million could be the low end.
Have a Safe Day!