Corn: Steady to lower
Beans: 1 to 2 higher
Yesterday corn saw follow-through buying after Friday’s USDA report. However, poor export sales will most likely limit any rally on corn. Exports last week were 460,000 mt, which was at the bottom of expectations. Brazil will be planting the Safrinha crop in February and the Argentina corn crop is seeing favorable weather and will be hitting the market in April. As a result, the export window for U.S. corn is closing fast. This combined with the potential for 94 million acres of U.S. corn to be planted and trendline yields have the trade hesitant on corn.
Soybeans were lower yesterday even though exports were at the top end of the analyst’s range. This was mainly attributed to the unwinding of short corn/long soybean spreads. With phase 1 of the U.S./Chinese trade agreement being released tomorrow the trade is getting to the sidelines until more is known. If the U.S./China trade deal is supportive, we will still have to overcome South American beans being cheaper right now which could limit any upside the phase 1 deal brings.
With the uncertainty in the markets, contact your local GMA who can help you develop a marketing plan for your grain. We are also currently offering an averaging contract for new crop 2020 contact your GMA for details on this and other contract offerings.