Corn is down 3, soybeans are unchanged and wheat is down 7 to start the day.
Traders are coming to grips with the change to wetter weather in Southern Brazil and Argentina. Much of the crop has been lost, but this forecast change could stabilize yield. However, we won’t know much for another 7-10 days if this will actually even happen.
The forecast for South America is the same this morning. Hot, dry conditions prevail over the next 7-10 days. A reprieve of the dryness is forecast starting around January 14th to 15th. Rain is expected to fall of .5 to 2 inches in the driest areas of Southern Brazil and Argentina. It took a couple days for most traders to come on board with this change, as it could just as easily have been an anomaly in the models. The dome is still prevalent in the back end of the models, just not quite as intense.
Next Wednesday the USDA will release their final report for the 2021 crop. Historically this is a big report and despite the estimates not showing much change, I would expect this one will have something to fire up the traders. (up or down) If you have old or new crop corn to move, I would suggest taking off some of the risk ahead of this report to prevent getting caught by any bearish numbers that could be released.
Have a Safe Day!