Beans are leading the charge this week, with continued rainfall forecast in Brazil further delaying harvest. They are now nearly two full weeks behind normal pace and are only 15% complete with harvest. Despite the delays, a record large crop is still projected for Brazil. This has not been talked about as much but is very significant. Wet weather is also delaying planting of their second-season corn crop, which is only 20% planted. These corn planting delays are extending the U.S. corn export window out into June-July, and there have been inquiries the past week in those slots. We may see some sales announced yet this week.
Indonesia is the world’s top producer of palm oil and is also dealing with bad weather. Excessive rainfall is hurting yields and production may fall to a three-year low. This will add further support to soy oil, which is surging to record highs near 50c on the nearby March contract.
The weekly EIA ethanol stats will be out this morning, with last week’s weather likely to drop production due to natural gas curtailments in many areas. Weekly export sales will be out tomorrow morning.
New crop corn and beans continue to set new contract highs as markets need to “buy” acres worldwide. Producer selling overall remains light, although there are some making new crop sales.
Corn: up 2-4c
Beans: up 7-12c