SOY – The Beans finished on a down day to end the week with losses. This is fueled by concern over Chinese demand , but also the Brazilian crop has gained in size. As I have stated there is a more than ample supply of beans globally. However, concerns over meal persist. If the meal has a high in beans do as well most likely. If meal rallies again, then beans may have another upside surge. It is my belief China will stagnate due to the Pork sector and ample supplies. This could have a long term effect on the market. The acreage will be watched closely in the next report. The weather clearly will play a key determining factor.
CORN – The corn continues to retrace to the downside. as stated this was to be expected. The weather forecast has cleared. Good progress will be made in the midwest in the next couple of weeks. This may push corn a little bit lower. The next area of support in my opinion is close around 380. This could set up a opportunity for another leg up if the right things happen. the acreage is key. A further reduction would keep stocks a bit friendly. Then weather will need to be watched. A rally is possible if this plays out correctly.
Be Well