3/8/2021

Trade was strongly higher from the start Sunday night, with new contract highs in beans after the May bean contract gapped 8 cents higher at the open following a weekend of heavy rains in the north and central regions of Brazil, creating further delays for an already slow harvest.  New crop corn also set a contract high of 485'6.  It's important to maintain a skeptical approach to crop news out of S. America but it seems as though the seriousness of the situation is increasing with the excessive moisture forcing some farmers to abandon unharvested fields and raising concerns over quality in beans that can be harvested.  There are some production estimates due out this week and it will be interesting to see how they analyze the situation.  Two week forecast models show plentiful precipitation falling over Brazil production areas.  Weekly export inspections were on target with 1,545k tonnes of corn inspected and 588k tonnes of beans inspected.  The USDA also revised the prior week's volume of inspected corn, increasing the number by 25% to 2,050k tonnes.  Corn and beans both finish the day higher but well off of their highs.  The March WASDE report is set to be released at 11am tomorrow morning.  Trade is expecting the USDA to trim down the carryouts for both corn and soybeans.