Beans: steady-1 better
The corn market is having a tough time finding a rally given no chance by the overall economic environment due to the remaining threat of the Coronavirus. Fundamentally, there is not a lot of new news to help the market find the amount of support that it needs. Ukraine reported they are starting spring planting in southern regions this week, with optimism high for another strong 2020 harvest. Last year, Ukraine’s total production hit a record 75.1 MMT, up from 70.0 MMT in 2018. Additionally, the country’s grain exports hit 40.1 MMT so far in 2019/20 which is up 23% from last year’s pace. We are seeing the “Black Sea” region become a larger factor in the global market. Argentina’s crop is projected to be 3% completed by the end of this week as well and started in April they will have the cheapest corn on the world market.
The soybean market made some small gains yesterday as it tried to fight it’s way off of the lows. Argentina is reportedly pretty dry right now but that is leaving little concern with the trade as Brazil will likely make up for any minor hits in South American output as a record crop flourishes there. The concern for the market is that the Chinese have yet to purchase any beans under the phase-one agreement and the trade fears that we could see the lowest export inspections number this week since last summer. This morning beans are steady as the trade fights a strong U.S. dollar, few weather problems in South America and tying to gauge the impact of the Coronavirus.
This is the last week to sign up for our Averaging contract. It is a great tool to use in your marketing plan! The deadline is Friday at 4:00 pm. Get in touch with your local GMA to sign up.