The day before the monthly USDA S&D report found traders believing in higher SA production numbers and possibly lower corn exports as corn finished down 6 cents. Nearby May futures have retreated 20 cents off their near term high and seem to be weighed on by increasing corn carryout and increased new crop planting intentions. Corn exports could really be the dagger for prices this year as our reputable stellar corn quality of years past has given way to problems this year with buyers looking to Brazil and Argentina for higher TW and lower damage supplies. Funds are estimated long 105,000 contracts of corn.
Soybeans finished unchanged as they should fare better tomorrow from a domestic standpoint as many see exports higher and production maybe a tad smaller. Carryout should be lower than 200 million bushels which gets into the needing a descent crop this year to stay at an ample supply. The bad news for beans tomorrow will be SA production estimates as all the private forecasts have been larger than the last USDA indications. Evidence of the large crop is seen with Brazil's infrastructure starting to bend as they try to handle the increased bushels. Funds are estimated long 13,000 contracts of soybeans.
Monthly report card tomorrow morning at 7:30.
Scott Meyer
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