Grains worked higher yesterday and again last night. China is in the market buying HRW and soybeans while being rumored to be pricing corn. South America is having some weather issues and Brazil is dealing with logistic problems getting soybean cargos on the water to send to China. Soymeal prices continue to be firm as they become a replacement for expensive/unavailable DDG’s. The dollar is well of its recent highs which helps but it is still incredibly strong and the biggest safe haven trade so far during the outbreak. The energy market has not been able to make any significant move higher so export news is the best news right now.
Today’s Corn Outlook: Corn settled 3.75 higher are another 3 cents higher this morning. Flash sale of 138K to unknown this morning. China is rumored to be pricing corn and possibly DDG’s/ethanol. If May can move back over 3.55 and hold you may get some more technical buying.
May Corn Technicals: The corn market is bearish territory and continues to blow thru technical support. A close under 3.35 ½ will open up 3.18 on the downside. Bulls need to see a close over 3.55.
Today’s Soybean Outlook: Beans settled 2.75 cents higher on Tuesday and added a penny overnight. They were trading higher overnight and have had a nice run the last few sessions. Logistical issues and bean meal are playing the biggest roles in this rally. China has been rumored to have bought some more US soybeans, but we are waiting for confirmation.
May Soybean Technicals: The soybeans are short term bullish and a close above 8.90 will open up a challenge of 9.00 and 9.10. Bears need a close under 8.61. Exports: 138K of corn to Unknown.
Weather: S Midwest and Delta are forecasted more showers the next 2 weeks. NW Argy and C&SE Brazil still have some dry spots.
Dollar Index: The dollar is trading 58 ticks lower this morning at 101.66. Brazilian Real: The Real is trading 2.5 ticks higher at 19.69.
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