Corn down 2-4
Beans down 4-6
Corn closed higher yesterday with help from the wheat market posting the largest single-day rally since July and a potential of rise in Chinese purchases. China said they would begin accepting applications for year-long tariff exemptions on March 2nd. US corn export inspections were up a little bit from last week and did reflect a new marketing year high. The corn market is trading lower this morning and will likely struggle unless China starts buying corn or there are problems in S. America.
Soybeans closed slightly lower yesterday—ignoring the strength from the corn and wheat markets. NOPA reported the largest January crush rate on record. Crush rate is being driven by rising demand for meal, which has resulted in bean oil stocks being the largest in 7 years. Beans are trading lower this morning. Concerns of last years prevent plant acres coming back into production this year could mean limited rallies in new crop beans.
There is a growing story in Africa and Asia related to a VERY large swarm of locusts moving through the area and destroying many crops. We’ll continue to keep an eye on this as it could lead to more demand for US products.