Corn and soybeans are feeling the pressure of rains that fell in South America over the weekend. Corn is currently down 3 and soybeans are down 19. The current rain system is going to linger for a while and will give some relief to the crops after the heat that they just endured.
Early planted corn and soybeans suffered irreversible damage from the recent dry conditions, but the later planted crops will benefit from the recent rains. These rains will aid the finishing of planting as roughly 15% of Argentine corn and are still had to be planted as of last week. Cooler temps are expected moving forwards with improved rains expected across Southern Brazil over the next 10 days.
Since the current export season commenced in September in the U.S. and February in Brazil, China’s accumulated soybean imports from the U.S. (December-January) have declined by 30% from a year ago to 17.8 million tons. The figure is lower than the levels prior to the U.S.-China trade war. On the contrary, Accumulated Brazilian soybean imports (April-January) have exceeded the prior season and reached 54.1 million tons. Sufficient supplies in Brazil are going to keep the Chinese sourcing from there until prices or supplies change.
Have a Safe Day!