2/2/2023

Price action in corn and soybeans was independent today. Corn was higher overnight and went into the coffee break at 4 cents higher, the market saw this as an opportunity to liquidate length. March corn was stuck in 5-6 lower trade from mid-day into the close. Soybeans opened above the prior day's close and enjoyed a strong day of trade that was almost exclusively higher. Overall, a nice recovery from yesterday's sell-off. The market is choosing to ignore a record first crop in Brazil and improved conditions in Argentina. Soybean exports, overall, have probably out performed expectations but our elevated board prices have certainly been detrimental for corn export business. It's no secret that U.S. grains are the most expensive in the world and Brazil has been undercutting us for over a year. Brazil's corn exports for January were estimated at 6.4 million tonnes, up from 4.4 mmt the prior year. Old crop basis has been weakening steadily over the past 2 months. Weekly export sales were above expectations for corn with 1.593 million tonnes sold. Soybeans were within the trade range estimates at 736k tonnes sold.

Dec 23 corn in a steady downtrend since harvest.