Corn opened the day 4 lower and soybeans are unchanged.
The energy market put the brakes on the rally last night led by natural gas, which is 200 lower this morning. These markets sometimes effect the way prices trade at the CBOT and CME. Energy has been helping the CBOT rally but is also in the process of putting in a high. This has created a bounce in corn and soybeans here at the beginning of harvest as beans are back over $13 and corn is around $5.30. If you need to sell something, this is an opportunity. The markets tend to sag at the end of the week in harvest when rallying early in the week.
Export sales were 246,600 mt of corn and 1,264,200 mt of beans. Corn sales were on the slow side, where beans were strong and better than expected. Next week may show the slowdown from the lack of offers at the Gulf. The U.S. Department of Agriculture confirmed cancellations of 132,000 tons of U.S. soybeans sold to China and another 196,000 tons sold to unknown destinations, all for delivery in the 2021/22 marketing year that began Sept. 1.
China reportedly bought four to six cargoes of Brazilian soybeans (up to 360k tons) earlier this week for Oct-Nov delivery, an uncommon time frame for the purchases but likely due to the export outages in the U.S. Gulf as of late. Freight rates for shipping are at the highs of the year due to the big bump in energy prices. Foreign buyers do not know what to do as they want to buy the cheaper US corn, beans, and wheat as premiums in the basis market have dropped along with price.
The 10-day forecast is similar to yesterday where moderate rains are expected to fall somewhere between the Dakota’s and Minnesota. The rest of the Midwest is mostly dry in the 10-day outlook and the 10-15. Temps warm up out West for a few days and then subside to the South into Texas. The back end of the model has turned to cooler this morning after the 90’s move out at the beginning of next week.
Have a Safe Day!