Stronger markets this morning after a weak overnight session. Corn is up 5 and soybeans are up 30.
The 6% drop in the Brazilian currency over the last few trading sessions plus weakening values for corn in Argentina have caused the recent setback in the markets. Traders remain fearful of increased supply from South America and less demand for US corn as Argentina corn prices have shifted below US values.
The trade was expecting weekly corn export sales of 400-800 mt, soybeans 100-500 mt. Actual sales were 115,900 mt of corn, 334,000 mt of beans. Bean sales were split between Mexico, Germany and Japan. China is obviously waiting for Brazilian beans.
The outlook for the next week remains hot and dry for Argentina, which should continue to stress crops going through the reproductive phase of development. Very heavy rains remain in place for much of Brazil, other than Rio Grande do Sul at the far southern tip of the country. However, that pattern is expected to change by mid-month. Rain chances start improving significantly for Argentina after March 12th. This should be able to recover a part of the lost production potential for Argentina’s corn and soybeans.
Have a Safe Day!