Markets are down 3 in corn and unchanged in soybeans this morning after trading as much as 10 lower overnight.
Corn prices rebounded yesterday, while beans and wheat traded both sides of unchanged. The technical traders are indicating the lows early this week could be the bottom on old crop corn moving thru the summer while soybeans and wheat may set new lows. Currently I believe the lows in old crop corn that were placed on Monday and new crop corn that were placed on Wednesday could be the lows for the short term. This is all provided we don’t see some old crop cancelations from the Chinese buyers which is becoming more and more a possibility.
End users in the south and east including chicken giant Perdue Farms have already purchased the most Brazilian soybeans since 2014, when huge sales to China forced the U.S. to boost imports. Brazil has also sold a large amount of the oilseed to Mexico, which usually secures supply from its North American neighbor. Brazil is scheduled to ship 150,000 to 180,000 metric tons of soybeans to the U.S. this year, with poultry and livestock producers in the southeastern U.S. taking advantage of the lower prices in the world’s top exporter, according to data compiled by Bloomberg. Mexico has also bought more than 700,000 tons and is close to surpassing last year’s record.
The 10 day forecast for US weather has active storm systems over most of the Central Belt. There are spotty rains forecast out into next Wednesday. After that there are am active combination of systems moving around the Midwest into June 3rd. Thursday, Friday and Saturday have the biggest chances a week out and then the heaviest chances are Monday Tuesday. The near term forecast is mostly dry which will allow planting to finish up. We don’t see much rain for the Dakota’s, but overall the weather is pretty bearish. Temps will also warm up and should push emergence.
Have a Safe Day!