Markets are down sharp to start the week with corn off 8 and soybeans off 7.
Favorable weather continues to be the case in South America. Fronts are bringing rain to previously parched areas of Argentina. The forecast is consistent with where we left things off on Friday. A total flip to a wet pattern in Southern Brazil and Argentina, while North and East Brazil will be very dry. Argentina saw totals last week of over 2 inches and look to get another 2-5 inches this week. A high pressure ridge has set in Brazil that is keep the rain out for the next 10 days. There are also some indications that we could see a flow of moisture return to Brazil for the safrinha corn areas which would be beneficial to the crop.
Private survey based planting intention estimates should start to come out this week and will provide info for the markets to trade. Next Wednesday 3/31 is when the USDA will release planting intentions.
I would advise producers to have 40-50% of their new crop sold prior to this report to protect against any bearish numbers. If the USDA gives us 93+ million acres of corn, this market could sell off in the new crop.
Have a Safe Day!