In the overnight corn is trading 2 3/4 pennies lower, soybeans is down 2 3/4 cents and wheat is up 1/2 a penny after closing last week near one month lows. This weekend the Korea Feed association purchased 110,000 metric tons of corn from optional origin. Last week U.S. export sales were very strong for corn booking 2.1 million metric tons, twice the amount analysts were expecting.
AgRural said in a report issued on Friday that they plan on cutting their forecast for Brazil’s soybean production in their February report due to the dry weather which has damaged soybean development in the northern part of the country. Over the last 30 days northern Brazil has received 60% less precipitation than its average during the same period in time.
Soybeans looks to trend lower this week after falling through $9.91 which held as support since late October. After falling through $9.91 support, soybeans paused its decline but failed to trade back above that level. The price area of $9.91 which acted as support is now a firm resistance level. Considering the bearish surprise in ending stocks in the January Supply and Demand report, the disappointing NOPA crush numbers in December and the significant dip in export sales last week, soybeans may continue to feel selling pressure going forward.
