Good morning,
Corn is down 3 and soybeans are down 7 to start the day.
Rain in Brazil has been greater than expected which is adding to today’s selloff. With good rainfall forecasted for the next 7 days I don’t look for market support from South America.
This morning’s export sales were dismal, coming in at 14.5 million bushels, which is well below the ten-week average of 52.1 million. US corn is cheap and getting cheaper, but we are still struggling to make sales. The strength of the US dollar, a record South American crop and a lack of world demand are keeping things in check.
With all this negative news and a USDA report coming next Friday that is expected to be bearish stocks, I am hoping something gives. We hit the support level in CH24 ($4.6175) that I was looking for back in November, so hopefully the floor is in. While I am not expecting it, we could see some adjustments to the acres, yield, or demand. (Let’s Hope!!)
Have a Safe Day!
Garry Gard
920-348-6844
