2/28/2023

Not a good day in the grain markets today.  Corn support was at 6.35 futures and the market failed to hold that level and finished at the lows of the day at 6.30.  That opens the door for some more downside pressure down to the gap we have sitting at 5.95 futures.  My fingers are crossed that we can find some exports at these lower prices, which might get us to bounce back in the coming weeks.  The processor likely needs more coverage when the farmer hits the field to plant and lower prices will slow farmer selling for now.  Beans were also drug lower today as they tried to hold their own the last few days, but today they felt the pressure the as well.  Support on May beans is at 14.76 futures, which is only 3 cents away currently.  If that level doesn't hold it opens the door to the November low at 14.19 futures.  The main reason for the bean pressure today is the advancing Brazilian harvest and offers from that country that are well below the United States. A lack of Chinese buying and news they may be washing out of Argentine purchases added to the negative tone. Crush margins remain negative in China and these cancellations would not be surprising.