What is happening in South America?
Corn and soybeans pulled back overnight as rains hit drier parts of South America. The trade seems divided on how much coverage/relief the rains have brought so far. The real question is whether the forecasts hold for more rain the rest of the week. Many don’t believe that S Brazil and Argentina will be able to recover much or what has been lost. You should see some stabilization of crops in S Brazil and Argentina but the damage in Parana and Rio Grande de Sol looks to take 17 MMT off of early projections so we are expecting Brazil to be below 130 MMT. Look for some early session selling with negative momentum carryover from last night. Watching 5.85 area in corn and 13.42 area in the March contracts for support. NFC Grain Comments 1.18.22 (1)