Corn saw support from the bean market and flooding in the northwest Corn Belt yesterday and managed to close a couple cents higher. Yesterday’s bean rally was the result of China buying PNW beans and reports that Chinese officials rumored to have temporarily lifted tariffs on up to 200 mmt of soybeans. Beans failed to hold the highs as all of these beans were not bought causing traders to question China’s demand for US beans. The market needs to see more than “good will” purchases if it is going to add fundamental risk premium. If China doesn’t buy all 200 mmt, this could be viewed as bearish the bean markets.
There is no serious threat of damaging cold weather in the Midwest growing areas for the next two weeks but there is talk of frost in North Dakota and Minnesota along the Canadian border next week.
Weekly export loadings last week were the lowest since 2013 and significantly below last year. The lack of demand has been and will continue to be the market mover regardless of crop size.
Have a great day!