Market Commentary for 12/15/23
The market continues to watch Brazil’s weather. Mato Grosso and northeastern Brazil are reporting hot and dry conditions. This area produces 40% of Brazil’s corn and could mean reduced yields. However, the most crucial reproductive development stage begins next week and lasts for nearly a month.
Source USDA
On the flip side, southern Brazil, which was dry last year, has received a lot of rain this year. The Rio Grande do Sul, Mato Grosso do Sul, and Parana regions, where nearly 40% of Brazil’s beans are grown, just finished planting. If favorable weather conditions continue, harvest yields should be good.
Reach out to me if you would like to discuss grain marketing opportunities for you farm operation at jon@superiorfeed.com
Want to read more by Jon Scheve? Check out recent articles:
How Selling Options In A Sideways Markets Can Increase Profits
Using Puts for a Guaranteed Floor Price On 2023 Corn
Pros and Cons of Hedging Grain With Futures Vs. Hedge-to-Arrive Contracts
How Can Farmers Increase Profits By Capturing Marketing Carry
