Weaker markets to open the day with corn down 5 and soybeans down 7. The grain markets are losing the outside market tailwinds as the week progresses and have taken the opportunity to bank some profits off multi-year highs this morning.
This morning’s weekly export sales report showed corn at 42.9 Mil. Bu compared to the 10 week average of 67.5. Soybeans came in at 51.0 Mil. Bu. compared to the 10 week average of 85.2. While both were lower than the 10 week average they were above trade estimates.
Soybean prices are retreating on news that central and north Brazil saw .50-2.50 inches of rain. This was more than expected. There is also talk that the dry areas of south Brail and north Argentina could see some new rains. Lack of new China buying US soybeans is also offer resistance near new contract highs. China soybean crush margins have turned negative.
Overall demand for U.S. commodities remains extremely strong and will keep the trade skittish into the new year, and until a decent South American harvest can be reasonably assured.
There is too much Covid news for the markets to resume a higher path for now. Fund managers are banking some profits, which started in Europe overnight. We have seen hardly any break in the market lately, but we have also seen prices close well off the high’s for several sessions. This could be the beginning of the volatility state of the market. Remember, we don’t run out of beans in November, we run out in August, and a lot is going to happen between now and then.
Have a Safe Day!