Thursday’s USDA report didn’t have any really big numbers to move markets one way or the other.
Wayne Nelson of L&M Commodities in New Market, Indiana reports the ending stocks for corn came in at 2.32 billion bushels. The average guess was 2.34 and the January number was 2.35.
“That was just a little bit friendly, but not considered too much,” Nelson said.
Analysts had been looking at a soybean carryout of 410 million bushels, but they came in at 420 which is unchanged from last month. Beans took the news a little harder, closing down 8-9 cents on the day.
Nelson is now looking at the weather forecast in South America and how much China stays in the market.
“We are looking at some heavy rains across northern Argentina. That’s where they did have flood problems before.”
Many are keeping a close eye on northern Brazil where they are expecting anywhere from 6-10 inches of rain. Nelson says South American farmers have been “stubborn sellers” in the past week. Those in Argentina will likely hang onto their beans because of a lower export tax coming next year.