Beans and meal are moving back towards roughly one-month highs from earlier this month as Argentine drought effects further intensify; nearby corn contracts are finding support as well, but new-crop values are being held in check with planting firing up across the Midwest this week.
The rain remains on tap tomorrow through Sunday for all but the far NW and SW belt and Plains, with precipitation holding north/northwest after that, and cooler temps holding out towards that area as well, warmer for the rest of the belt.
A lack of storage is becoming more of a factor in Brazil. Elevators in Brazil were quick to fill on soybeans this year as yields have been record sized in many areas. Now farmers are starting to bring in their first corn crop which is compounding the issue. As a result, we are hearing of terminals having to turn away corn deliveries. This may become an even greater issue in Brazil in a few months when the Safrinha harvest gets underway. A result of this storage situation in Brazil is we could see an elevated use of temporary facilities. This may include the use of storage bags. The problem with temporary storage use is that it can lead to issues later on, mainly quality losses. If this happens in Brazil, it could bring the US export business later in the year. Any hint of lower quality corn will also pressure its value, which would limit what the US could sell corn for. Once again trade will be heavily vested in today’s export sales data. While demand for all US commodities has slowed, soybean sales have been holding above the volume needed to reach yearly expectations. Corn sales have again slowed as China has backed away from the market and are short of yearly needs. Wheat bookings have been stagnant and right at the needed volume.
Have a great day!