For the first day this week the markets appear to be headed lower. Corn is down 3 and soybeans are down 12 to start the day. With a 3 day weekend on the horizon and funds holding a record long position we should expect some profit taking.
The US dollar has made a low over the past couple weeks awaiting whatever any new stimulus package may look like as the White House is in transition.
The weather forecast for South America is consistent with prior runs dropping some much needed rain in Argentina. Totals were be .25-1 inch over the next 48 hours, with most of it falling to the North. Western Brazil is going to see excessive rainfall where amounts will be up to 8 inches, causing flash flooding. Central Brazil will see scattered showers over the weekend. The important thing will be if Argentina has more rain in the forecast early next week.
The president of one of Brazil’s truck unions has warned in local media that upcoming strike action, scheduled for February 1, could be worse than in 2018 when national action over pay and conditions cut off essential supplies to major cities across the country.
The president of the National Association of Autonomous Transport (ANTB) Jose Roberto Stringasci was quoted in a number of Brazilian media outlets warning that the protest over rising diesel prices is gathering support and could be bigger than 2018.
With few major railways, Brazil is particularly reliant upon truck transportation to move goods around the country, with the previous truck strike quickly bringing the country to its knees.
This has lead to additional Chinese purchases of US soybeans as they have already been dealing with the delayed crop from South America due to weather.
Reminder there are no markets on Monday 1/18/21 as trade observes Martin Luther King Day.
Have a Safe Day!