Weaker markets overnight as corn, soybeans and wheat trade lower. At this time corn is down 3 while soybeans and wheat are both down 5. The last two days have resulted in corn giving back half of Tuesdays gain.
Support levels on the CBOT for CZ20 are in the $4.02 to $4.05 range which looks a long way off at this juncture but still very much attainable. It might be worth pointing out that the supply situation, both inside the United States and globally, are unlikely to change much before January when the final production report for the U.S. is released and more information is known about South American crop prospects. Trades will be left to focus on demand indicators such as the pace of exports and ethanol grind, which is a bit of a mixed bag at present. Exports remain incredibly bullish, but still only account for 18% of total demand even with the USDA’s record forecast. Ethanol grind is projected at the second lowest marketing year total since 2012-13 as margins continue to yo-yo between profitability and losses. Livestock prices are below long-term moving averages with a fair amount of anxiety hanging over the market as long as coronavirus-related restrictions remain a concern.
I am not going to predict where the market is going to be five minutes from now let alone 5 months from now, but producers are currently able to lock in some very good prices out into the summer months and should actively be marketing grain.
Have a Safe Day!