Good Morning,

Mixed markets to open the day with old corn up 3 and new corn down 5. Soybeans are currently up 25. Today’s focus will be on the USDA S&D report that will be released at 11:00am. Estimates are listed below.

2020/21 US Ending Stocks (million bu)
May 12th Average Est. April
Corn 1.257 1.269 1.352
Soybeans 120 116 120
Wheat 872 844 852

2021/22 US Ending Stocks (million bu)
May 12th Average Est. April
Corn 1.507 1.360 N/A
Soybeans 140 138 N/A
Wheat 774 743 N/A

Continued dryness in Brazil plus surging vegetable oil prices have the soybean markets running higher the last few days. Add in the fact that the corn to soybean price ratio has gone from 2.63 back in March to 2.28 heading into this week. It looks like soybeans feel they have given enough ground and need to rally for acres, but is it too late?
Brazil lowered their estimate for the safrinha corn crop to 79.8 MMT from 82.6 MMT previously, but still remains above last years 75.1 MMT. They slightly raised their estimate for the first corn crop to 24.7 MMT from 24.5 MMT last month as the total corn crop is now estimated at 106.4 MMT compared to 102.6 MMT last year.

Have a Safe Day!

Garry Gard