Corn: 4 to 5 lower
Soybeans: 4 to 5 lower
Yesterday March corn closed up 5 cents, rallying on strength in the Argentina cash market due to dry conditions that are expected to extend into early February. In April, U.S. corn will continue to be the cheapest option in the world. Ethanol production declined last week to 308 million gallons, down from the previous week’s 314 million gallons. This morning corn is trading lower with the wait of the export sales report out this morning. Wheat prices are also hanging lower this morning, which could be putting an additional drag on corn that has been following wheat higher previously.
Yesterday March soybeans closed down 4 ¼ cents, with concerns about the developments of a large Brazilian crop. At the same time, we are not seeing Chinese demand for U.S. beans, since they are priced higher than Brazilian soybeans. Trade is looking for export sales in the 450-850,000 range in this morning’s report.