Corn 2 to 3 cents higher
Beans 1 to 2 cents lower
Yesterday markets were lower on buy the rumor, sell the fact mentality of the markets. Without seeing increased Chinese demand, the focus of the market is bearish given the supply/demand situation. Corn exports did hit a 4 week high, but that number was just at the average “needed” sales pace. South America is also adding to the bearish tone with Argentine corn set to hit the market in April, and economics supporting Brazilian farmers to plant more safrinha. All of this combined with the potential for 94 million acres of corn to be planted in the U.S. has the trade seeing no reason not to short this market with any rallies being sale opportunities.
Soybeans are in a wait and see mode on any increased Chinese demand from the Phase 1 deal being signed with the trade taking an “I’ll believe it when I see it” approach. Beans for export out of the U.S. are still higher priced than Brazil which is not helping prices in the U.S.
With all of the uncertainty in the markets, talk to your local GMA about marketing alternatives including our Averaging Contract for new crop 2020. Let us show you the different options for helping you to manage risk for your operation.
With inclement weather moving in today stay warm and safe.