More Argentina cuts, will USDA follow suit?

Overnight- Corn & Soybeans slightly lower while wheat is higher.

Rosario grain exchange lower Argentina’s corn crop to 47.5 MMT due to leafhopper infestation. Beuno Aires Grain Exchange had already dropped to 46.5 MMT while the USDA sits at 55 MMT.

Soybeans are not affected by the leafhoppers, so we are still looking for 50 MMT of soybean production.

Going forward in future years, Argy farmers may shy away from planting corn and switch to more soybean acres along with other crops.

Another system is currently moving across the Midwest and while we are forecasting a dry forecast this weekend and into next week will we get dry enough before the next rain to get much planting done is many areas.

It will be the crop progress report on May 20th is the important one in our opinoin vs next week’s.

USDA will release May WASDE tomorrow with a look at the new crop balance sheets.

These will show heavy numbers to start, and the market knows that but how will the market react?

South American production cuts could be a surprise bullish driver.

Bottomline

More rain up front and we need time to dry out. Reactions to WASDE will be the short-term driver. Be ready with some new crop offers if we get a kneejerk reaction higher because it will likely not last long unless we stay wet into the next two weeks. NFC Grain Comments Options -new (46)