- Chicago markets have been thin and mixed with corn making an early attempt to rally whilst wheat and soybeans remained in the red. As we approach the close all three markets are trading a touch lower and it feels as if fund short covering has been somewhat slower paced than in the last few days.
- We continue to view S American exchange rates as conducive to acreage expansion going forward, despite rising input costs and this has the potential to weigh on prices looking forward. Current year output has the potential to grow on the back of actual yield date, which is revealing better than anticipated results in Brazil as well as improved weather conditions across Argentina, Paraguay and S Brazil. Rainfall across Argentina in the last couple of weeks has nearly replenished soil moisture levels and last year’s yield has the potential to be at least equalled.
- Rangebound trade has not excited the trade and we have to wait for US plantings and spring weather before the next key direction can be clearly defined. Meanwhile, S American crops appear to be getting bigger as threats diminish. Upside remains limited at this time – unless we see fresh bullish input.