The USDA report published on Thursday held few surprises. Basically we have too much corn and wheat, and most likely too many beans. Expect more sideways trading in the short-term.
South America Update
South American weather has been “normal.” Many expect record yields in Brazil and trend-line yields in Argentina. Combined yields may exceed early season predictions. Also, export paces seems strong with few logistical issues so far.
Basis levels in the U.S. are extremely low for this time of year. This signifies end users are having no problem getting the supply they need and that prices are higher than they need to encourage farmer selling.
U.S. exporting is pacing above normal, which may indicate the USDA underestimated demand. It may be too soon to tell though. South America may have an impact in the upcoming months.
Soybean futures values are nearly $1.80 per bushel higher this year than last year at this time.… Continue readingRead More »