Corn and soybeans are unchanged this morning after the extended holiday weekend. Recent rains in the dryer areas of Brazil and dryness in the areas of Argentina that have been excessively wet could weigh on the markets this week. Forecasts for Argentina and Brazil look favorable in the 7-10 day outlook as the weather patterns look to shift from their recent issues.
We are currently in the 32nd day of the US Government shutdown which has resulted in the lack of key reports that traders are anxiously awaiting. With the lack of these fundamental reports the markets will continue to trade technical data.
Chinese officials will be in Washington this week to meet with US officials as they continue to work thru trade issues.
Producers with old crop corn to move before spring planting should be making sales with the forecast for no significant moves higher between now and spring. I would look to make sales prior to the March 29th planting intentions report. Producers that typically move grain in the mid-summer months should be making cash sales with current prices in the $3.65-3.70 range and lock in basis on a good portion on their remaining bushels. US Carryout of corn is going to be large again this year which will make current levels look very attractive.
Corn quality has also been an issue this year with higher levels of toxins in this year’s crop. Higher vomitoxin levels have resulted in many Midwestern producers scrambling to find a market for their grain as many ethanol plants and livestock producers have been discounting or rejecting loads with higher levels. Producers should be pulling grain out of their bins on a regular basis to monitor quality and prevent increased contamination of any toxins. Lighter test weight and poorer quality grain should not be stored into the summer months.
Have a Safe Day!