Corn: Steady to 1 lower
Beans: 6 to 7 Higher
With the extended timeline for shutdowns and government regulated distancing, oil prices took another hit overnight. The weakness in the energy market continues to weigh on the corn market. There has been some buying as of late to help support the loss of ethanol demand, but it will continue to drag the market down in the near-term. Beneficial weather is in the forecast for South America which looks to reel in a record harvest.
The bean market is trading higher as the prevention of the spread of coronavirus starts to shutdown Argentinian ports due to the lack of available workers. Brazil is likely to be faced with the same problems before long.
Markets will look to tomorrow’s planting intentions report to confirm the expectation of a huge corn crop for 2020. The February outlook was at 94 million corn acres (vs. 89.7 last year) and 85 million soybean acres (76.1 last year). There will also be a Quarterly Stocks Report released tomorrow. Combine this with the end of the month, and the end of the calendar year quarter and tomorrow could be volatile.
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We’ll recap the USDA reports shortly after the release tomorrow. Stay tuned.