Markets are softer this morning following thru on the overnight selloff with corn currently down 7 and soybeans down 17.
In yesterday’s report, the USDA raised their estimate of the 2021/22 U.S. corn crop by a modest 53 million bushels to 15.115 billion bushels from their previous estimate in November of 15.062 billion. Planted acreage was raised 53k acres to 93.357 million, while harvested area was raised 303k acres to 85.388 million. The average yield held at the November report estimate of 177.0 bushels/acre and will set a new record if it holds through the various final revisions which can occur over the next year or so.
The forecast for South America is just about the same as yesterday. Rain is forecast for Northern Argentina and Southern Brazil and some of these totals are expected to be heavy. This is the first meaningful rain in over 6 weeks. The long-range forecast also has rain in Argentina.
The USDA report is past us and there was nothing to move the market higher or lower which is probably a good thing. Look for the market to monitor South American weather in the coming days and weeks to get direction on what demand may be for US grains.
Have a Safe Day!