MN Broker South American Weather Front Burner Item [Listen]
It turned out to be an pretty good week for corn and beans plus late in the week even wheat managed to stage a small recovery. The week began on Monday with the grains especially corn under pretty severe pressure. Corn bounced off of key support on Tuesday moving 20 cents higher only to give back about 7 cents Wednesday. Beans were a little stronger and seem to be more supported by the weather in South America. The major bean crop is being decreased in South America with too wet in the north and too dry in the south.
Remember in South America their first major crop planted is soybeans. There is some first crop of corn planted but not a lot. Then after the first crop of beans is harvested they farmers plant their second crop with is corn. It is the second crop of corn in South America accounts for the major corn production in South America. So, it does seem logical that corn traders are not real concerned about the weather impact because the corn has not been planted yet!
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Remember next Wednesday January 12, 2022 the USDA will release the January Supply Demand Report at 11:00 am. Plus, this is the final production numbers for last years corn and soybeans and the Quarterly Grain Stocks Report. This January report has a history of causing limit moves in corn and beans, up and down, sometimes in the same day! Click on the link above and listen to Gordy talk about the ag markets last week.