Weakness continues as WASDE approaches

Corn and soybean prices are trading lower overnight as we approach the USDA’s May WASDE report where they will set projections for this crop year’s production. The USDA should stick with its trendline yields and planting intentions acres. So, 92 million acres and a 181.5 bushel yield for corn and 87.5 million acres and a 52 bushel yield for soybeans which will give you a hefty carryout for corn of +2 billion bushel, but soybeans will likely be under 300 million bushels that would reflect a friendly bias this early in the crop year. The big concerns look to be corn demand and Brazil’s growing record soybean and corn crops. The prices are front running a perceived bearish report and today’s weekly export sales report is not likely to help as none of the major crops had very good sales numbers. We could see a sell the fact that this report has nothing friendly to tell us and then see a relief rally after the fact as much of the bad news will be priced in. For today, we will watch 5.80 & 13.92 for support and 5.99 & 14.30 for resistance. NFC Grain Comments Options -5.11.23