Corn: 3 to 4 higher
Beans: 7 to 9 higher
The dry forecast and slow planting in South America, furthered by more soybean export sales, helped the market have a huge day yesterday. While we lacked much news that was corn specific, traders are starting to wonder just how tight the ending stocks could get in Friday’s WASDE report. Guesstimates are in the range of 177.7 to 178.5 bu./acre putting the carryout at 2.1 billion bushels.
As China returns from its holiday, today may be light on new export news but this may cause a louder day tomorrow. With planting only being 1.5% done vs. 5% on average in drought-stricken Argentina and Brazil, world stocks could get pretty tight and the U.S. could have a strong export window towards the end of this year into early next year. To add to this notion, there is still a lot of yield uncertainty here at home pushing traders to drop their ending soybean stocks estimates from 460 million to an average guess of 370 million. With little to no carry in the market, there has been very little incentive to store beans, and farmer sales have been strong off of the combine.
We continue to encourage offers for both soybeans and corn, especially if you have anything getting close to the 15-day deadline. Contact your local Landus Customer Service Specialist or Grain Marketing Advisor for assistance with any grain marketing needs.