|
| Markets disappoint following our mini rally. As wheat gives up half of it's recent gains and soybeans continue their weakness from yesterday. Giving back nearly the entire +40 cent rally from the past week.
Despite the weakness, all of the grains have held their recent lows and are only slightly lower or even higher on the week. Here was the changes:
March Corn: +3/4 cents
March Beans: -4 cents
March Wheat: +7 cents
The grains are mostly lower due to weaker demand, some rains thrown in the forecast for Argentina.
South America weather is going to remain the hot topic of the grains for a little while with the wide range of estimates being thrown out for both crops.
The weather looks somewhat cooperative, but Argentina is still seeing some brutal heat and dryness which is supposed to continue for the next week. However, they are suppose to see more rains in the 10 to 15 day window.
If they get rain in the next week or so, there won’t be much damage and the talk is that the subsoil moisture levels can handle this heat and dry spell as long as it does not extend much farther than next week or two. If they do not get rain, keep in mind this is Argentina's July. They are in a very key pollination time. So we will have to see how it shakes out and how much rain they get or don’t get.
Buenos Aires Grain Exchange rated the Argentina soybean and corn crop conditions down slightly from last week, but far better than last year's disaster of course.
Another thing that is pressuring the bean market is the continuation of weaker basis on Brazil. Some say that perhaps this is an indication of a large crop. Nobody knows yet, but this could also just simply be harvest pressure. Seeing basis drop at harvest is nothing unusual.
Wheat saw additional pressure from China approving imports of wheat from Argentina. Creating more global competition for business from China….
Read the rest of today’s grain update where we go over when we historically make our highs and why we expect higher prices, risks that could prevent a rally, risk management & more
Read Here: https://txt.so/yjPuZR
Edited by Mr.Grain 1/27/2024 07:15
| |
|
Is price action today a correction? Or was our rally the correction? Market Commentary
