February WASDE on tap

Overnight- Early rains have started to fall in S Argentina with bigger rains forecasted Fri/Sat.

New lows in corn for March and March soybeans are off 15 cents at the morning break.

Feb WASDE tomorrow at 11 AM

We are looking for USDA to cut Brazilian production but there should be little change to domestic numbers.

US corn demand estimates are in line with ethanol grind possibly growing later this year.

US soybean exports are lagging behind lower USDA estimates for the year and cut be cut further down the road but seems too early to do it now with shrinking Brazilian production.

Soybean crush should be raised in the future as well but will not offset the shortfall in exports.

Soybeans shipped out of the US Gulf currently running $1.52 per bushel higher than Brazilian soybeans on a FOB basis.

Bottomline

So far this week, March corn is down 4 cents and March soybeans are up 11 cents. Funds are short and adding this week going into tomorrow’s report. They are dropping the hammer and corn has run out of support levels. Soybean support lies at 11.75. Look for more pressure today with some possible short covering late in the day or overnight. NFC Grain Comments Options -2.7.24February WASDE on tap