Corn and soybeans are slightly higher in the overnight session.
Soybean production in Brazil is nearing the point where weather is starting to become less of a factor. Many believe we have seen the lowest production forecasts of the year. Conversely, Argentine weather will have trades attention. Current forecasts are calling for increased temperatures and only light rain for the next two weeks in that country. Trade is hyper-sensitive to this news as last February, hot and dry weather began to diminish soybean production. From February to May, Argentine soybean production fell 15 MMT.
Argentina’s Rosario Exchange recently revised their production forecasts for corn and soybeans. Their estimates for corn production stand at 46.5 MMT, up 2.5 MMT from their latest estimate. Their soybean forecast is at 52 MMT, which is 2 MMT above their last estimate.
Reports circulated yesterday that China offered to increase purchases of US agriculture products by $30 billion over 2017. Rumors have been circulating that China is looking to approve US ethanol and DDG’s for import. President Trump also mentioned the possibility of large purchases of US corn by China. No confirmation of action has been made nor has any further mention of tariff increase deadline of March 1st.
Market Movers; Export sales data, Ag Outlook Forum data and trade news.