Happy St. Patrick’s Day!
Traders are taking their pot of gold this morning as they sell off some of their longs. Corn is currently down 4, soybeans down 11 and wheat is down 5.
Despite rumors and confirmation yesterday of additional sales the markets are trading lower today.
China has bought some US corn ahead of the meeting tomorrow in Alaska, which also has had no effect on corn prices in China. There is supposed to be another sale announced to China today in corn of somewhere between 400,000 to 800,000 mt. The USDA confirmed a sale of 1.156 mt yesterday, but this sale is old news to traders as it was made weeks ago, just not announced to who it was made.
The market continues to be choppy with very little connection between old and new crop values. Recent trade has shown strength in the old crop with new crop fading. The March 31 report is going to be the next mover and while no one knows where acres will come in, I fear that it could be bearish the market. (mainly new crop) If you are a producer, make sure you have enough sales on that if the crop report comes out with 96-98 million acres you will be ok. On the flip side, end users should look to protect themselves the other way if we see anything sub 93 million acres that they are ok.
Before you dig into that corn beef and cabbage and start drinking your green beer today, give your local buyer a call and put some firm offers in place for old and new crop corn. Who knows, maybe the luck of the irish will be with you and some of them will get hit!
Have a Safe Day!