Markets are steady this morning with corn up 2 and soybeans down 2 to start the day.
We saw more selling yesterday in the markets yesterday with news out of China. There was some talk about a cancellation of 13 million bushels of corn from China; it was a logistics issue, not a demand one.
I don’t think that the market will fall that far; we may enter a consolidation period during the month of February. The insurance price is going to be record high for farmers, but so are inputs and the price to put this crop into production. We have a crop report next week that may not be very helpful. We could see prices come off a little more next week.
Light rains fell overnight in parts of Southern Brazil and Argentina. Other than the major rain that moved through Southern Argentina a few weeks ago, most amounts and coverage have been spotty. The forecast for the next 10 days has very little rain coming. Temps have started to heat up in some areas with high 90’s to 100’s. La Nina is still very prevalent in Southern Brazil and Argentina; crop losses are probably over a billion bushels of beans now. Second crop corn will be the next issue.
Have a safe day!