Markets are mixed this morning with old corn up 3, new corn down 2 and soybeans down 9. Soybean prices appear to be taking a hit with concerns of a larger issue with the African Swine Flu in China.
The forecast for Argentina and Southern Brazil is much wetter than any of the models from last week. A current cold front is going to open Argentina up for rain over the next 10 plus days. One rain system will hang around for the next couple days producing .2-1 inches, followed by another that will bring 1-2 inches later this week. Temps will be below normal as it rains in the South. The weather improvement can help their crop, but is coming a little late to dramatically change production. Brazil Safrinha corn crop is 77% planted, up 20% on the week vs 89% a year ago. Argentina corn is 4% harvested vs 8% a year ago. Brazilian soybeans are 45% harvested, up 12% on the week vs 58% a year ago.
New speculative trade position limits go into effect today for the grains with spot month limits essentially doubling and total positions held allowances increasing substantially. These new limits are going to increase volatility to the up and downside.
Have a Safe Day!