Despite a cut in exports, a hike in ending stocks, and an increased Brazilian production estimate, the soybean market is rallying.
The USDA January report Friday was mixed for the grains, with mostly neutral numbers for corn.
The U.S. just doesn’t seem to have the same zip in export markets, as South America continues to try and get rid of its huge crop from last year.
The new year starts with the 3 major crops that represent about 80% of the planted land annually all showing large relative stocks.
For grain producers, 2017 started out as anything but perfect.
Another positive that is an ongoing development is the South American crop.
The weather the next few months will determine what kind of crop yield occurs in South America.
Producers must be patient – price-bottoms typically last months, while tops last minutes.
Temps are about normal for all of South America for the entire 14-day forecast.
We can thank God for nearly perfect weather – from August forward – for our plentiful harvest!