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| Grains mixed as corn sees it's biggest 3-day swing since August, now sitting +20 cents off it's Monday lows.
Soybeans held their recent lows and closed +12 cents off their lows while the wheat market gave back all of yesterdays gains as lower European wheat prices are pressuring ours.
China has been in the news aggressively buying Ukraine corn and Brazil beans this week. This doesn’t help us, but is is supportive. As it shows strong demand from China and signals that they are in the market even if it's not for us.
Brazil harvest is moving along pretty fast. Typically a fast harvest means it is dry.
Dry weather in Brazil still has the potential to affect the second corn crop. This is even more important when you look at their lack of moisture they already face. Dry is only good for a fast soybean harvest. (1st pic)
March to early April is a crucial time frame for the development of the second corn crop.
US weather has not had much of impact yet, but we have had some wild weather.
This warmest winter on record will likely bring early planting. Early planting means we will probably not get a typical planting scare. Short term early planting could add pressure to this market as there will be talk about higher acres and planting going well. This will probably pressure the markets come late March and happen until drought talk starts.
Long term it will come down to the drought situation. We could very well get a drought scare. Keep in mind, this is a futures market. Even the thought of drought is often times enough to spark a little interest, whether it comes to frution or not.
Below is a WAYY too early comparison to 2012. Will have to see if this trend continues into summer. (2nd pic)
We just had warmest winter on record. Lack of snow. Poor soil moisture levels. (3rd pic) Went into winter fairly dry. Long term forecasts call for hot & dry La Niña.
Overall, this market looks like one that is trying to find a seasonal bottom. The charts have not fully turned yet to signal higher prices, but are showing signs of bottoming…..
Read the rest of todays grain market update where we go over what to expect from early planting, drought, managing risk & more
Read Here: https://txt.so/iakolw
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Market comments - best 3 days for corn since August
