7/9/2021

Another day similar to the earlier this week; weakness in the corn sector with futures continuing to leak value and soybeans continue to rise off of their lows from last week with the underlying support of minimal crop acres and general dryness in the soybean growing areas.  Export sales for last week were so-so.  Old crop sales posted a net of 173k tonnes for corn and 64k tonnes for beans, both within the target ranges.  Net sales for new crop corn were towards the bottom side of estimates at 198k tonnes and new crop beans netted 119k tonnes of sales, well short of their low estimate of 200k tonnes.  USDA confirmed the sale of 228,600 tonnes of soybeans to Mexico for the 2021/22 marketing year.  This is a routine sale and nothing out of the ordinary but it is nice to see the USDA starting to flash some 8am sales after being very quiet for most of May and June.  We will get a weekend full of weather forecasts and a fresh set of WASDE numbers to trade on Monday.  One of the keys for the July supply and demand report will be what the USDA does with Brazil's corn production number, trade is expecting a 6.3 mmt cut to Brazil corn production.  Analyst averages show a small 36 million bushel cut to drop the US corn carryout to 1.071 bln bushels and leave the soybean carryout unchanged at 135 mln bushels.  Have a great weekend!