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Corn Outlook:
The grains are beginning to see a reprieve in the hangover created by last week’s bearish crop report. However, it may be short lived because of the anxiety surrounding President Trump’s intention to annex Greenland that has led to increased concerns among our European trading partners. Also, it appears that the bill allowing year round E-15 sales will be kicked down the road. Meanwhile, illustrious exports have been the talking point and factor supporting corn since harvest. However, that may be ending. Last week, inspections were 58.4 MB and below the average of 63.1 MB that must be shipped weekly to meet USDA’s target of 3.2 BB. Unless they pick up, we are on track for shipments of 2.9 BB. Currently, there are no production threats in Brazil, although there are some dry areas in Argentina. The bottom line is price gains are probably limited until planting begins later this spring.
Bean Outlook
Harvest is beginning in Brazil which will act as a headwind for soybeans in the weeks ahead. Meanwhile, China has been more active recently in their purchases and have fulfilled their 12.0-million-ton obligation. This has increased optimism of them taking more, which is providing short-term support. Last week, export inspections were 49.1 MB with China receiving shipments of 19.8 MB. The question is, will they take more? Currently, the U.S. is more expensive than Argentina and Brazil which favors them sourcing South America. The bottom line is the upside potential for soybeans may be limited until we get closer to planting and weather becomes a greater factor.
Wheat Outlook:
There is very little news in wheat. Exports are disappointing and have fallen 36.8 percent since the third week of December. Last week, inspections were 14.4 MB and below the average of 16.4 MB that must be shipped each week to meet USDA’s projection of 900 MB. Currently, we are on track for shipments of 795 MB. The bottom line is wheat needs a positive stimulus, but one is lacking for the moment.
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