2/2/2024
Feb 02, 2024
Friday didn't offer us anything fresh in the markets. Corn was quietly down in the range of 2-4 cents and soybeans settle 13-15 cents lower and just above fresh lows as the market continues to price in record production and favorable conditions in Brazil. Following three years of traditionally high prices, incredible production in the U.S., and added acres in South America there is a plentiful supply of grain around the globe. Near-record prices of soybeans in the U.S. has created demand destruction and allowed Brazil to undercut our exports. Corn usage has increased year-over-year during this market cycle but big acres and record yield in the U.S. has given end users a plentiful supply. Overall outlook for the markets continues to be lower. Extended forecasts have been consistent in favoring an early spring. Average planting pace, average growing conditions, and average yields for corn and soybeans is not supportive to current price levels.