Morning Grain Comments
After a slightly higher open last night the grains are once again trading lower this morning. Last week corn dropped another fifteen cents and soybeans fell more than thirty cents. The nearby corn contract is trading below $4.00 for the first time since 2020. At some point the market will need to stabilize as funds are at record short levels and markets are in a very oversold position. There continues to be concerns about the Chinese economy and their overall lack of demand of U.S. grains. It is a world market and even with this extreme drop in prices South American supplies are less expensive. The weather story in South America is getting closer to its end, however the Brazilian safrinha corn crop pollination is still about two months away. In the U.S. we will continue the debate over acres awaiting the end of March planting intentions report. Look for slow choppy trade as we approach the first notice day on the CBOT for March futures contracts. Have a great Monday!