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Recent showers in South America, and more in the forecast, means that weather will start to lose its influence. The USDA recently lowered their estimate for Argentina and Brazil’s corn crop because of dry conditions; however, it is still expected to be a record. Although they may reduce their projection again next month, the focus will have largely turned to the spring weather forecast for the Midwest, and planting intentions. In other matters, corn exports rebounded last week with inspections a marketing year high of 63.2 MB. However, they have a long way to go in reaching USDA’s forecast of 2.425 BB. Meanwhile, China was active taking 348,912 tons, their largest shipment of the season. This, along with inflationary concerns, gave values a boost this week.
Soybeans met resistance last week because of recent showers in South America but have since recovered because of inflationary concerns and fund buying. Although the USDA has lowered their production forecast for both Brazil and Argentina, Brazil is still expected to produce a record crop. Meanwhile, harvest has begun in Mato Grossa with good yields being reported. In other developments, exports recovered with inspections last week at 63.2 MB. This was the highest seen since early December. Shipments to China were also their highest since early last month. This likely added to the market’s strength the past couple of sessions. Going forward, spring planting estimates will take center stage in the weeks ahead.
Wheat is finding support from dryness in the southern Plains and increasing tensions between Russia and Ukraine. There have been negotiations between the U.S. and Russia regarding the situation, but there is no resolution. In other matters, export inspections last week were 13.5 MB, their highest since the first week of October.
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