MarketEdge PM Comments

(Allison Ryan)

(Allison Ryan)

Corn attempted to move higher, but failed and followed beans into the red. Nearby corn closed down 1¼ and December was down 2¼. March beans were down 21½ and new crop was down 12¼.
 

• Beans led the way, with talk of record crop coming out of South America, despite the rough growing conditions in Brazil; Argentina meanwhile continues to have ideal conditions and will offset any losses
• China hasn’t been an active buyer in the US bean market since the beginning of the new year; they are taking a wait and see approach with South American production
• Beans did chart a key reversal today, trading higher and lower than yesterday, and closing lower; hopefully we aren’t in for a continued tumbling on the bean market
• Corn was up for part of today’s session, but ultimately followed beans south; we did tested resistance at the 4.48 level, and would have ideally closed above that
• The market needs to continue to hold the new lows and maintain above that $4.40 level; testing new lows daily could provide more pressure on that March board
• Corn basis mostly continues to improve, as little to no farmer selling with these lower futures
• Have a plan in place with your originator to get bushels locked in on any opportunities with both old and new crop; utilize offers and your app to get more on the books
• The Dow was down, crude was up, and the Dollar was firmer

 
Have a great evening.