Afternoon grains

Lower corn and soybeans going into WASDE

USDA releases its February WASDE tomorrow and so far this week the corn and soybean contracts have been moving lower. Corn has lost 3 cents and soybeans are down 16.75 cents this week in anticipation. The February report is not usually a big mover, but there will be some adjustments. The biggest is likely to be cuts to Argentina production. The USDA attaché has already cut Argy soybean production to 36 MMT but the pre-report estimates are around 42 MMT. That is quite a spread and with better weather the USDA attaché too low? Brazil production will likely remain close to the same and we will get a fresh estimate from Conab earlier in the day. On the domestic side, we expect the soybean balance sheet to be left relatively unchanged, but corn could see more cuts in demand. It would most likely come from exports and not ethanol just yet. The real question is will there be any reason for the markets to move significantly? Currently, we see it as unlikely unless you get some technical damage to the charts. NFC Grain Afternoon Comments. (21)

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