Good morning,
All grain markets are starting the week off lower with corn down 5, soybeans down 10 and wheat down 7.
A drone strike killed three U.S. service members today in Jordan, creating fears of an escalating regional war in the Middle East. The strike by Iran-backed militants wounded at least 34 other service members. Iran denies involvement, but it’s widely believed that Iran is involved in the dozens of attacks on U.S. forces in recent months, with today’s fatalities bound to raise political pressure on the Biden Administration to have a strong response in an election year.
Not much has materially changed since late last week. Funds continue to add on to their net short positions amid good weather across South America, promoting a good harvest pace for soybeans in Brazil followed by rapid second corn crop planting progress. Argentina’s weather forecast for the week two is wetter than that of Sunday.
Argentine production estimates are rising to further offset losses in Brazil. The focus will soon shift to the U.S. Midwest planting season. Corn must lose acres this year to avoid a ballooning balance sheet. Some analysts are proclaiming that soybeans must gain acres to avoid being tight in the year ahead. I do expect soybeans to gain acres, and corn to lose some, but I disagree that soybeans “must” gain acres.
Have a Safe Day!
Garry Gard
920-348-6844
