January WASDE & Quarterly stocks today

Corn and soybeans continued to trade higher overnight before the January WASDE & Quarterly Stocks Report. Buenos Aires Grain Exchange reported that they are looking for bigger drops in production than has already been estimated and that is what got the soybeans going last night. Agroconsult a private entity out of Brazil revised their Brazilian production up to 130.9 MMT for corn and 153.4 MMT for soybeans. USDA is currently at 127 & 152. There is no question Brazil is going to grow a crop and they will make up for any drop in Argentina. The combined production will be significantly higher for both commodities compared to last year. Argentina has already started booking soybean cargoes from Brazil to make up for any shortfall in their own production. Crushers are going to crush! The US production numbers will likely change very little, and any major changes will come from the usage side of the ledger. We are looking for a cut in corn exports, but any other categories would just be guessing. A bullish surprise, if there was to be one, would come from lower quarterly stocks in either commodity. We will either be smarter or more confused after 11:00 tomorrow. Export sales disappointed across the board for last week. For today before the report watch 6.48 & 14.77 for support and 6.64 & 15.10 for resistance. NFC Grain Comments Options -1.12.23

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