Reversal of prices
A negative day for the corn and soybean contracts on Tuesday. After sizable rallies the last couple of sessions after last Friday’s report and a surprise OPEC production cut over the weekend had the grain and oil seed markets on solid ground. Overnight, the tone and price action turned negative as next week’s weather forecast turned warmer. Soybean contracts are still higher than were they closed last Thursday but May corn only 4½ cents higher from pre-report levels and December corn is 7 cents lower. The warmer weather may have traders thinking that 92 million corn acres intended is more achievable with a warmer forecast and StoneX’s higher record Brazilian soybean production (157.7 MMT) weighed on November soybeans. We think it is a little early to drop these contracts too far and lower old crop corn could bring more Chinese buying. We are far from recent lows in all contracts from late March so we will see what Asia & Europe think overnight into tomorrow morning. Watch today’s lows for 1st support as we are in no man’s land for producers and end users here in the middle ranges.