After a slow start Friday morning, our markets caught fire and rallied hard all the way into the afternoon close; corn ended up 25c (the limit) Friday afternoon and then opened up double digits higher last night. The spotlight of the market is squarely on Brazil’s second corn crop, and with no helpful rain in sight the market continues to add “risk premium.” We will start to see additional private estimates of that crop size this week.
Today is the start of a new week and a new month but it is feeling like more of the same- the market is stuck dealing with extremely tight balance sheets in both corn and soybeans, attempting to incentivize maximum production while keeping demand in check. Demand hasn’t given an inch yet and to hit max production, we will need help from Mother Nature. So far, she’s been a little sketchy.
Remember, starting today we have new daily price limits (up and down)- the corn limit is now 40c/day and soybeans is $1/day.
Corn is 15 to 20 cents higher
Soybeans are 15 to 20 cents higher