Corn is unchanged to three higher depending on contract month while soybeans are up three to five this morning.
This weeks AG Forum did little that wasn’t expected with acres and carryout for 2021. They projected soybean acres at 90 million and corn at 92 million. Carryout was pegged at 1.552 billion bu. for corn while soybeans came in at 145 million. Production for corn came in 7% higher than 2020 based on an increase in acres and yield.
Typically this report does not influence trade as it is just a government projection with no producer surveys to back it up unlike the March 31st planting intentions.
Look for trade to continue to be volatile heading into spring planting as weather this spring could set the markets tone for the next 12 months.
Producers, Traders and speculators that are long corn and soybeans should keep in mind that these recent high prices are doing their job of quelling demand.
- Ethanol plants that have been down are not starting back
- Ethanol plants that have been running are slowing down due to economics and recent weather issues.
- Livestock producers are converting to alternative/cheaper sources.
- South America is starting harvest and begining to export soybeans and corn that will compete reduce US demand in the coming months.
Have a Safe Day!