Markets are continuing the slide this morning with corn down 20 and soybeans down 25.
Yesterdays WASDE report put the 2020/21 ending stocks near estimates with corn at 1.257 bln bu, soybeans at 120 mln bu and wheat at 872 mln bu. The 2021/22 ending stocks had corn at 1.507 bln bu, soybeans at 140 mln bu and wheat at 774 mln bu. The USDA cut exports in corn by 305 mln bu and soybeans by 205 mln bu for the 2021/22 year.
Yesterdays report had corn acres for 2021/22 at 91.1 mln planted acres and soybeans at 87.6 mln acres. Expectations are that the June report will show more corn and more soybean acres due to the price run we have seen in the last 30 days. The expectation for more acres and a current carryout of 1.25 are both going to put pressure on the corn market moving forward and could make it difficult for us to test last Fridays highs.
Additional bearish news could develop due to a bridge on Interstate 40 that connects Arkansas and Tennessee. This bridge spans over the Mississippi River near Memphis. This bridge was closed Tuesday after a crack was found during a routine inspection. All river traffic was also halted beginning on Tuesday as officials inspect the bridge and make plans for repairs. It wasn’t known how long the bridge or river traffic will be shut down or what will exactly be done to repair it. The could impact the market as barges of grain will not be able to flow south to the ports while this bridge is closed. This could possibly lead to the US canceling or postponing exports. More to come on this!
Have a Safe Day!