- Markets trading mostly higher overnight with beans seeing the best gains.
- Export sales this morning for wheat were 153.1 tmt (200-500 expected), o/c corn 1,888.3 tmt (500-800), n/c corn 2.4 tmt (0), o/c beans 1,240.2 tmt (600-1,100), n/c beans 287.7 tmt (200-400)
- BIG corn sales, pretty good bean sales, and disappointing wheat.
- The best buyer of corn was unknown destinations and best buyer of beans was China.
- China still reportedly booking corn out of Ukraine.
- Planting delays in Argentina have been reported with 200-300k acres yet to go in.
- Corn open interest was down yesterday on the price weakness.
- Corn technically remains range-bound, but is pushing above the 50 DMA again this morning. Next resistance at 3.55-3.58 and support at 3.50.
- Beans technically are at the highest level since mid-December with March approaching stiff resistance at 9.80. Support is well-below the market near 9.65.
- Wheat is bumping into its 20 DMA again this morning with resistance at 4.27 and support 4.20.
- No exports on the daily report today.
- Brazil catches scattered rains in most areas over the next couple of weeks with the exception of northeastern areas (10-15%).
- Argentina caught rains overnight with more expected the next 10 days. The extended forecast is where the trouble is with potential for dryness to return.
- Corn had a big week for sales, which historically has not always led to the higher reaction one would expect. It is a step in the right direction, however. Regardless, the market is range-bound with meaningful changes to the fundamental outlook unlikely for a while.
- Soybeans are seeing a good bounce off the following the December crash. Argentina’s crop is probably headed lower, but Brazil looks good (OLD NEWS). Bean supplies are more than adequate, so I think producers should be willing to sell into the current strength.
- Wheat had terrible sales. The market is getting to resistance levels where if we can push higher, I think a low is in place. If the market fails, at the 20 DMA resistance, we are probably going to resume the long-term lower trend.
Fun Fact of the Day: Although Mount Everest is the highest mountain, the tallest is actually Mauna Kea in Hawaii. ‘Highest’ is only a measure from sea level to the summit, while ‘tallest’ is a measurement from the bottom of the ocean floor to the mountain to the top.