Weaker markets to open the week with corn down 5 and soybeans down 15.
Markets initially reacted to a change in the weather maps to wetter, with lower trade last night flowing into this morning. We’ll have to see if the banks want to come out of some of these long positions. You can portion out another sale on this market peak. We also have the USDA Report coming on January 12th. The market will expect to see reductions of Brazilian and Argentina production, but the adjustments will be slower to come as that is the way it’s done at the USDA. I am not overly bearish but think the weather forecast is going to stop the rally for now.
Argentina will face intense and prolonged heat coupled with little or no rain through Jan. 12, fueling concerns over corn and soybean crops, according to a report from Buenos Aires Grain Exchange. The forecast for South American is going to be very hot this week with temperatures reaching as high as 112 degrees. A storm system is building in the 10-day outlook that had been showing up on the extended forecast last week. There is more rain on the extended forecast as well in the long-range map this morning. The temperature map also backs off in the heat department as dome is going to be much smaller moving forward. Northern Brazil will also see lighter rains over the next week. This forecast has been moving to drier for Northern Brazil and wetter for Southern Brazil and Argentina since last Tuesday.
Trade is all about weather today and I would expect a lower closed today as the markets appear to have reached a top for now. With the USDA report out on Wednesday I would look for a little more profit taking leading up to that report.
Have a Safe Day!