MarketEdge PM Comments

Feb 16, 2024

(Brayden Frazier)

Good afternoon! 
Markets are mixed today as March corn finished today's session down 11/4 cents at 4.1650, a new multi-year low, while March beans ended up 10 cents at 11.7225. New crop corn finished up 2 cents at 4.5875 while new crop beans ended up 73/4 cents at 11.7275. Wheat continues its downward spiral on the week and continues to make new lows, finishing today at 6.5475. 

  • The funds continue to be extremely short in the market; nearing record numbers
    • net short 292k contracts
    • record is 344k in 2019
  • USDA released their net farm income forecast for the upcoming year
    • 25.5% decline (156 billion to 116 billion)
    • expenses are projected to be up 3.8%
    • Efficiency will be key going forward in all aspects to maintain profitability
  • South American weather projects to be wetter in NE Brazil and drier in SE Argentina in the 6-10 day forecast
  • Basis is improving in the short term at the processors as well as River Valley elevators; consider pricing out any open HTA's while the basis is high

The Dow and the S&P were down while the US dollar was up slightly. 
Have a great weekend!

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