Our markets have continued higher overnight after yesterday’s strength (yesterday nearby corn closed up 11c, beans up 7 ½). In a similar fashion to yesterday, the cold snap seems to be getting most of the attention as the forecasted temps look to stay below normal for the next 7-10 days, keeping planters out of the field (soil temps are questionable for planting and look to stay that way for a while).
Remember, this current new crop market simply needs more... more corn, more beans, more cotton, more sorghum, more wheat, more everything. Demand looks to remain strong into next year and China keeps soaking up any crops that are for sale. Luckily for the market, a properly motivated American Farmer is unmatched in the world and we have an entire growing season in front of us to prove that. What happens when we DO plant the acres and get the yields?? That is where producers need to be careful and take profits while they are there.
Sticking to weather, the other piece worth watching is down in South America. There’s a second season corn crop in Brazil that is trying to finish out – this crop is needed to meet world corn demand this Summer. If there’s a hiccup with that crop, the world will look towards the Black Sea/U.S. for additional supplies, and we aren’t exactly swimming in corn here. The only button for the market to push would be to ration demand until the next harvest arrives (read: high prices, big inverses, lots of volatility).
Corn is 5 to 8 cents higher
Soybeans are 7 to 10 cents higher