The new year sell off continues today as corn is down 5, soybeans are down 12 and wheat is down 9. We have lost 30 cents in corn over the last 3 days, 52 cents in soybeans and 53 cents in wheat.
Covid has run rampant in China. A worry about a Global slow down and supply chain issues are dragging prices lower for a host of commodities. Corn, beans, and wheat have followed this program of no buying only selling.
The forecast for South America looks much wetter in the long-range forecast. The hot air mass that moves in today will hold until the beginning of next week before backing off. When this moves out, it will be the beginning of a significant change in weather for them. If realized, we could see another move lower in the bean market which will spill over into corn.
The biggest concern to traders right now is Covid in China and the concern over global demand. The US is already significantly behind on corn sales and any additional bearish news would not be good for the unpriced 2022 crop that producers are holding in their bins.
Current cash values in the $6.30 – $6.50 range and new crop corn in the $5.50 – $5.75 range are not bad levels to be selling and should be strongly considered with a lot of unknowns on the demand side.
Have a Safe Day!