Markets - General
Peter Meyer says, “Both the corn and soybean markets will need to take their lead from changes in both global and domestic demand given the production shortfall stories have become stale.”
Chip Nellinger says, “Producers should be prepared to be more aggressive than years past in protecting downside price risk.”
“Near term, the soybean market has a loftier perch with a tight balance sheet emerging from supply headwinds,” says Mike North.
“It’s difficult to find anything bullish to say about corn for 2024.” says Jon Scheve.
Angie Setzer says, “With their new trade agreement with Brazil, China is likely to import less corn from the U.S. in 2023.”
March corn hit a new contract low of $4.41 on Friday. Will corn see more pressure trying to price in extra bushels? March soybeans also hit a low of $12.06. Will $12 support hold without a drop in Brazil production?
Brazil is seeing a sudden shift in weather with heavy rains now forecasted over the next two weeks. While it will bring relief to drought areas, it could cause harvest delays and issues planting the safrinha corn crop.
Darren Frye with Water Street Solutions says there are no signs of a low yet in the soybean and corn markets, but Chicago wheat may have confirmed a bottom and will be the leader of the three wheat classes.
Soybean prices continued to slide this week on news that a wetter weather pattern is blanketing Brazil. The rains are giving the crops a much-needed drink after battling severe drought conditions at the end of 2023.
Jon Scheve discusses how to capture market carry in the market and how he made 37 cents of profit.