Yesterday, corn and beans traded lower most of the day, even though we started the day session in the green and had values higher for a little while. At the end of the day, March corn lost 5 3/4, while January beans were off 6 1/2. We’re ending the overnight session with almost everything on the board in the red. Spring wheat, red wheat, oats, rice, corn, soybeans, soybean meal and soy oil are all trading lower with the exception of Chicago wheat, that is about a penny higher. Livestock producers should look at this 3 day stretch of lower values as a buying opportunity to get some coverage on for the next month or two.
Both corn and beans suffered for the 2nd day in a row due to improving weather conditions and solid planting progress in South America as well as lack of new export news. The Brazilian 1st corn crop is now 94% complete, which is slightly ahead of last year’s 91%, but pretty much in line with the 93% average. Soybean planting in Brazil is estimated at 83% complete vs. 84% last year and 85% on average.
Beyond that, there is still optimism for more Chinese purchases and concerns remain about the rest of the South American growing season due to La Nina. For now, expect a lower close again today without some major news about exports, or a big surprise in the weekly EIA report regarding ethanol production and gasoline demand for last week.
Corn 2 to 4 lower
Beans 12 to 16 lower
Please note: Landus will be hosting a webinar this Friday at 7:30 AM to discuss Section 199A. To register, click here: https://register.gotowebinar.com/register/1016298799824824587