Corn, wheat, and the soy complex are all starting the week on the defensive. There are a lot of items contributing to the weakness, but for the most part it’s the lack of new inputs to support or push markets higher.
For corn, after losing more than 16 last week on the March futures contract, the overnight session has it down another nickel. Over the weekend, the weather forecasts for Brazil show better conditions in the central and northern parts of the country. Argentinian corn planting is estimated at 55% complete, pretty much in line with the 5 year average and last year at this time, both showing 56%. Despite the rumors and thoughts of more Chinese purchases, none have materialized recently.
For soybeans, January futures lost almost 29 last week and another dime or so overnight. Expectations for a little more rain across much of Brazil is weighing on the market. Argentina soybean planting progress is said to be 54% complete, right on the 5 year average. As with corn, there have been no recent Chinese purchases to support the market.
Beyond that, there is a WASDE report scheduled to be released by the USDA on Thursday at 11 A.M. We don’t normally expect major adjustments in the December report, but 2020 is far from normal. Most analysts expect some eventual increase in exports for corn and beans, but not necessarily this month.
Corn 4 to 6 lower
Beans 10 to 12 lower
Congrats to all of the Cyclone fans in the audience. It’s great to see the ISU football team having success this year and working their way into the BIG XII conference championship game. Here’s hoping they can continue their winning ways the rest of the year.