We have a full-blown rally going on in soybeans, with South America having a growing crop in the fields.
With continued adverse weather in Argentina, it’s likely that soybean production numbers will need to be cut again in future reports.
Farmers have a chance to sell into a rally, for the first time in awhile.
Generally, a lower stock market will put pressure on all markets, especially during a correction as deep and quick as the recent one week break.
For most of the other markets like wheat and corn, the best sales opportunities will likely come during the growing season of the U.S. crop.
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.