By Tom Bovee, CHS New Horizons Grain Procurement
Argentina is all the rage and all eyes are focused on it, as the country has driven the market well beyond most forecasters’ expectations. Rain makes grain; therefore, this week was the first time someone lowered expected bean yields out of Argentina since the drought started. This also shows us just how resilient people believe these crops can be. Still, any reduction in yield means more of an export market for those looking to export beans. Beans are $0.74 higher and corn $0.25 higher than they were on Jan 1st. Funds have now started to go long on beans and corn, positioning themselves to defend this rally. Slow planting progress on Brazil’s 2nd crop is leading corn to new highs. It appears Brazil is as wet as Argentina is dry.
Marketing: Beans seem to find a high during the day/night before trailing off before the close of each market. This is the prime example of why you need to have offers in place with your marketer. Corn looks to finally test the magic $4.00 futures number as we push on that wall of resistance. It’s a large hurdle but one that, if overcome, should lead us to some great opportunities. As always with a weather driven market, be ready to make a move.
For more on the current state of the markets and what contracting opportunities are available, contact a member of your CHS New Horizons grain team.
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