Good Morning,

This morning corn is down 9 and soybeans are down 23. A technical meltdown developed overnight, high prices are going to have big ranges and moves.  This is just going to be part of things moving forward.  It will probably get even worse with the expanded position limits that go into place next Monday.  The drop is blamed on wet weather for Argentina and Southern Brazil, but this could be the beginning of a lower technical trade.  Volatility will rule this market all the way to the end.
Not that anyone should have expected much out of the USDA yesterday and most expected very few if any changes.  The USDA delivered to the expectations and delivered a dud of a report.  They made no changes to US corn, beans or wheat.

U.S. domestic ending stocks were left unchanged from February at 1,502 million bushels versus the average trade estimate of 1,460 million and the range between 1,302 and 1,561 million.  No other adjustments were made to any of the supply or demand figures on the domestic balance sheet.  The projected average farm price was also left unchanged at $4.30/bushel.  World corn ending stocks increased 1.14 MMT from February to 287.67 MMT versus the average trade estimate of 285.3 MMT and the range of estimates between 282 and 287 MMT.  Notable changes included a 650,000 MT increase in projected imports for Southeast Asia (SEA) to 18.7 MMT.


Have a Safe Day!


Garry Gard