Corn Finds Strength Overnight

Corn found more strength overnight while soybeans was off slightly but improved from its lows on the nights. Wheat was higher as well. In outside markets, crude oil continued to climb getting above $46 a barrel while the US dollar came under pressure.

Corn continues to find strength from yesterday’s big export sales report showing 2.6 MMT combined for old- and new-crop deliveries, the highest weekly total in 4 years. The weakness in the US dollar continues to make US grains more attractive. Argentina’s port price is running at $6 a MT higher than the US price versus in December when Argentina’s price was $7 a MT cheaper than the US.

In weather, rains will favor much of the Plains hard red winter wheat belt, with weekend showers reaching much of the central/southern Midwest and Delta. The Midwest/Delta then will see favorably dry weather for seeding in nearly all areas for most of next week, with a return of 11 to 15 day rain posing the next interruption to fieldwork. Overall, planting should remain at a favorable pace, and any concerns with excess moisture will remain localized.

In weather, rains will favor much of the Plains hard red winter wheat belt, with weekend showers reaching much of the central/southern Midwest and Delta. The Midwest/Delta then will see favorably dry weather for seeding in nearly all areas for most of next week, with a return of 11 to 15 day rain posing the next interruption to fieldwork. Overall, planting should remain at a favorable pace, and any concerns with excess moisture will remain localized.

In South America, Argentina was dry yesterday, with lows in the mid-30s to low 40s. Unseasonably cold air lingers this weekend, but frost threats remain minimal for double-crop soy. Mostly dry weather now looks likely to persist through much of the next two weeks, allowing corn/soy harvest to recover. Second season corn in Brazil from Mato Grosso through southern Goias to Sao Paulo and Parana will not receive much precipitation over the next week. Brazil showers this weekend will produce 0.10 to 0.75 inch of rain from far northeastern Sao Paulo, Rio de Janeiro and Minas Gerais to northern Goias and parts of Tocantins.

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—Kevin McNew