Markets are lower overnight due to the combination of drier weather forecasted for Brazil and a recent decline in Chinese internal soy and product prices. Weekly export inspections out yesterday were as expected with corn at 43.5Mln bu and beans at 65.9Mln bu. Bushels shipped as a percentage of USDA’s total year forecast stand at 31% on corn and 78% on beans. Many continue to have the opinion that between the large amount of beans that have already shipped and the large amount of outstanding corn sales yet to ship, export estimates are understated on both. We’ll see what USDA does with that. The next supply/demand report will be on Tuesday, February 9th at 11am.
In outside markets, crude oil surged to $55/barrel, the highest level yet post-COVID. Natural gas is also reaching recent highs due to an East Coast storm, as well as the first real forecast of below-normal temperatures for the Midwest and East later this week.
Corn: down 3-5c
Beans: down 15-20c