Brazilian bean crop is shrinking

It was an up and down day for the grain markets to start 2022. Everything started out higher in the overnight session as South American rains generally disappointed over the weekend as temperatures remain high but the grain complex pulled back as corn and wheat finished negative while soybeans finished 13 cents off its highs. Grain inspections for export were weak which feed the bears today but StoneX Brazil made a major cut to their Brazilian soybean production dropping it 11 MMT to 134 MMT which would be lower than last year. 134 MMT is still a huge number and while many think it is too early to make such an adjustment one must pay attention moving forward if such an entity is willing to make a dramatic change to its forecast. Fund managers were active buyers in corn and soybeans to end 2021 adding 13K and 25k longs respectively. We will see if overnight buying will push us back towards yesterday’s highs. NFC Grain Comments 1.4.22 – Copy

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