Corn down 2 to 3
Beans steady to up 1
Another large corn sale, the 7th this month, was reported in the weekly export data. This was in the form of a private sale of 4.9 million bu. to Mexico for the '19/20 marketing year. Prices rallied yesterday which spurred some technical buying. Expectations are slowly shifting for South American safrina as the USDA had assumed 2% better, but traders are looking at 2% worse production compared to last year if the dry conditions continue as expected.
Traders are continually skeptical of the Phase 1 China deal as we await for any real evidence to come through with sales to China. Beans followed soy oil higher overnight. Before the morning break, they set back a little, but are still in positive territory. Today's challenge will be overcoming the decrease in corn and wheat if the overnight trends continue.
It seems as if the markets are willing to take on more risk in the face of the worries surrounding the coronavirus outbreak. These worries are still applying downward pressure on beans and other vegetable oils as Malaysian palm oils dropped off another 10% yesterday. Markets were hoping to see a bump from the celebration of the Chinese New Year, which has been postponed due to the virus.