Markets were softer this morning with corn down 2, soybeans down 14 and wheat down 16.
Lower trade across all commodities after additional rain fell across central and northern Brazil over the weekend.
Last week’s export sales failed to reach even the low end of guesses with total corn sales at 14.5 million bushels compared to a 52.1 million bushels ten-week average. Accounting for freight, exchange rates, taxes, and tariffs the United States is more expensive out of the both the Gulf and PNW (Pacific North West) delivered into China vs. Ukraine, Brazil, and Argentina. While all these major exporters are facing logistical issues, Ukraine’s exports flows have been most affected. Right now, Brazilian corn is delivered into China about 40 cents cheaper than out of the PNW. Brazil is 40 cents cheaper delivered into China on soybeans as well vs. the PNW.
We have a big week for the markets ahead as we have WASDE/Stocks report on the 12th with CONAB out before then on the 10th. Look for a lot of positioning ahead of Fridays report as traders wait to see if the USDA gives us any fireworks to move things lower or higher.
Producers’ nationwide do not have much old or new crop corn sold and should be revising plans to get more sales on for both crop years. We need a lot of changes on the demand side of things to more this market higher. If the market does move higher, it is going to be met with a lot of selling which will cap any long-term rallies. Producers are advised to contact your buyers and get old and new crop offers in place ahead of Fridays report.
Have a Safe Day!