The corn market is picking up where it left off on Friday with the markets down 6 to start the day.
Weekend rainfall in Brazil ranged from 1-4.5 inches in the South and up to 2 inches in the North. The current forecast looks pretty wet in both the short term and long-range forecasts. This will continue to be the market mover as we progress thru South Americas planting and early growth stages.
Private analysts Safras & Mercado on Friday estimated 2023/24 Brazilian soybean production at 161.4 MMT, down from 163.25 MMT previously: that’s despite planted acreage rising from 44.68 to 45.62 million hectares (110.4 to 112.7 million acres).
Private analysts AgRural estimated Brazilian soybean planting at 74% complete as of Thursday, up from 68% last week but still behind 87% last year and the slowest pace since 2015/16. Center-south corn planting hit 83% complete this week, up from 80% last week but behind 88% a year ago.
Its going to take a change in forecasts in South America to put any kind of support in this market. As traders look at a large US crop and record acres in South America the world supply is not going to demand higher prices currently. Producers should be actively selling on any pop in the market for nearby through mid-summer.
Have a safe day!