Conab cuts Brazilian soybean crop.
USDA gave us a fairly neutral report and the markets pushed higher not happy with the cuts to South American production. They are too high in both Brazil and Argentina. This morning Conab cut Brazilian soybean production 125.5 MMT which is 9 MMT lower than USDA and they have their corn estimate 1.7 MMT below the USDA. In Argentina, The Rosario Grain Exchange has corn at 48 MMT & soybeans at 48 while the USDA is 54 & 45. The Conab report jumped soybeans 30 higher and corn 6 to finish the overnight. Soybean export sales were big at 2.49 million metric tons while corn and wheat were disappointing. Look for buyers early with maybe some pull back mid-session. We are getting really high and some major back and forth should be expected. March corn support lies around 6.35 and resistance at 6.60 for soybeans 16.60 on the upside and 15.91 for support.