March WASDE on Friday

Overnight- Corn and soybean futures were nearly unchanged overnight while wheat keeps retreating down another 4 cents.

USDA will release its March WASDE on Friday.

Will they give us anything to chew on or are they going to kick the can down the road?

On the corn demand sheet, ethanol most likely will be raised between 50 and 150 million bushels and the export pace for corn is currently above expectations but some are worried that the pace will slow as Brazil and Argentina corn crops come online.

Soybeans on the other hand are looking at a growing balance sheet as exports lag behind expectations with Chinese business all going to Brazil.

The other possible wild card is the USDA numbers for Brazil. They have the highest estimates out there currently and need to start moving them lower, but they likely will cut aggressively.

Once we get past Friday, the focus will be on the prospective plantings at the end of the month.

Bottomline

The USDA should not be able to do much to hurt the corn market on this report but could give us a bearish soybean outlook. In reality, we will be putting more emphasis on weather and where we think the acre battle will finish up. NFC Grain Comments Options -new (15)

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