Markets are flat to start the week with corn and soybeans trading unchanged while wheat is up 8. Wheat has been the upside leader with Russia facing another two weeks fo dry weather for their winter wheat areas. Corn and soybeans are feeling the pressure of harvest and the beginning of the rainy season in Brazil.
Chinas current holiday which began last Thursday has been extended to 8 days offering a ling anticipated break for many as the country tries to get back on its feed after the Covid-19 outbreak.
The USDA is expected to lower its corn and soybean production estimates on Friday. This could tighten supplies ahead of Brazil’s safrinha crop season but should remain adequate. The dry weather in Brazil could delay the soybean planting due to La Nina dryness which will push harvest there into February. This could increase US prices of soybeans thru the winter months while end users wait on the south American crop. Producers should take advantage of this opportunity by storing soybeans into January-February timeframe.
Have a Safe Day!