Markets are up slightly and trying to regain some of yesterdays losses. Yesterday we saw corn down 11, soybeans down 31 and wheat down wheat down 5.
There were many reasons for the nasty break in futures yesterday in the CBOT. Technical meltdown, trading through several levels of stops. Overbought conditions, without any substantial break in corn futures. A weather model that increased rain totals for Argentina for up to 2.5 inches. African Swine Flu breaking out in new areas of China.
CONAB raised their estimate of the Brazilian soybean crop to 135.1 MMT from 133.8 last month compared to the USDA at 134.0 MMt. They also raised their estimate of total corn production to 108.1 MMT up from 105.5 MMT previously.
Weekly export sales came in on the low end for corn at 15.6 mln. bu. compared to the ten week average of 66.5. Soybeans came in at 12.9 mln. bu. compared to the ten week average of 22.5.
Chinese soybean processors are taking down time for maintenance due to the slow arrival of Brazilian soybeans. Yet, soymeal prices remain soft. It’s not a good sign when soymeal futures in China are down when crushers are taking down time. That suggests soft demand due to a resurgence in African Swine Fever cases.
Have a Safe Day!