Morning Comments; Monday, February 11, 2019
MaxYield Cooperative - SETZ - Mon Feb 11, 5:34AM CST

Corn and soybeans are trading steady to lower this morning.

In Friday’s report, the USDA increased Argentina’s corn production by 3 MMT to 46 MMT. Trade was expecting this figure to be unchanged. Widespread reports of flooding throughout the growing season left many surprised by the increase. Sources claim that some key growing areas weren’t hit as hard and most of the flooding was in areas that aren’t known for crop production.

Recent reports show that Ukraine corn values are trading around $5.00 per bushel. The estimated input costs are around $3.00 per bushels, leaving trade to expect increased production from that country. Ukraine produces around 1.4 billion bushels annually, which is comparable to the state of Minnesota. Roughly 80% of Ukraine’s corn production hits the export market.

Early harvest soybean yield results have been disappointing in Brazil. Private forecasters continue downward revisions to Brazils estimated crop size. Many of those estimates are around 112-114 MMT, which would be 147 million bushels below the USDA’s latest estimate.

Market Movers; US/China developments, export inspections and South America yield reports.




 

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