Corn is down 2 and soybeans are down 10 to start the day.
Soybeans are leading the market lower this morning as rains look to develop in the 10-15 day forecast for Brazil and Argentina. If this forecast holds up, it may start toe change the story for soybeans which recently have been corns only hope of moving higher.
President Joe Biden and Chinese leader Xi Jinping met yesterday and agreed to open a presidential hotline, resume military-to-military communications and work to curb fentanyl production. There was nothing reported from their meeting that related to the ag markets which is not promising.
The Commitment of Traders report continues to show the managed money with its shortest position in the past 3 years. With a short position of 176k contracts, the market won’t feel heavy on shorts until they get to the 250+ contract level. S. American weather may still have the power to cause the shorts to cover, time will tell. Look for the markets to continue the range bound trade for the next couple months with South American weather being the only real mover.
My advice to producers it to have offers in place with your elevators or end users to market corn on any bounces in the market. $5 cash may be the high mark for any sales this marketing year and may only be attainable in the spring and summer months. Sales that you need to make between now and March should be targeted in the $4.75-5.00 range. Soybeans have more opportunity to move higher with smaller stocks and higher demand, so that is the commodity I would store for now.
Have a safe day!