West Central AGRI Services       CLICK - MFA CUSTOMER PORTAL  
West Central Ag Grain Comments  02/03/23 3:54:13 PM

March corn futures finished today's session 1 3/4 cents higher at $6.77 while March soybeans were 2 1/4 cents lower at $15.32 and March wheat in Chicago was down 4 cents at $7.57. 

South American weather remains the driving force behind any sort of price direction. Brazilian weather models indicate heavier rains for central and northern crop areas delaying soybean harvest and corn planting and southern crop areas are drier. Argentina received some beneficial rains over the last 10 days improving crop conditions but the next 10 days turn drier with warming temps. Many traders will use the next couple of session shoring up positions before the USDA’s next WASDE report. Next week’s report should give traders a clearer picture for how South American crop situation is progressing. Many traders are expecting to see further reductions made to corn and soybean in Argentina while others are predicting the WASDE will show higher corn and soybean production for Brazil. 

Corn futures struggled to find price direction as trade was two-sided for much of today’s session. The national average corn basis remains at its strongest level in over 20 years but trade has been light for much of the week. The Buenos Aires Exchange increased its G/E rating for Argentinian corn from 12% to 22% due to recent rains. Rains will move out of the region and temperatures will start to climb over the next 10 days. On the flip side, central and northern Brazil remains saturated slowing safrinha corn planting progress potentially extending U.S. export program. 
Soybean futures clawed their way back near the end of today’s session closing 8 cents off their lows. Early weakness was driven by improved Argentinian soybean crop ratings as the Buenos Aires Exchange reported soybean conditions increased 5 points to 12% G/E. Rumors were also circulating news wires that 1 MMT of Brazilian soybeans were sold to Argentina to help compensate for their shortfall. Some analysts are estimate that Argentina will import nearly 2 MMT of soybeans from Brazil in 2023. The most soybeans Brazil exported to Argentina was 657,000 MT in 2018. Throughout the session, traders turned their attention to 10-day weather models where conditions in Argentina look to turn hot and dry supporting domestic prices. In the short-term, soybean prices are being supported by delayed Brazilian harvest as heavy rains are being forecasted for central and northern Brazil. 



Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN