April WASDE & Big cut to Argentina

Overnight- Corn futures higher and soybean and wheat futures lower.

The PPI index came in a tenth lower than expected and while the stock and bond markets recovered a little, they did not reverse yesterday’s move.

The Rosario Grain Exchange cut their Argentina corn production to 50.5 MMT from 57MMT due to disease.

Some believe there will be more cuts to come but the USDA will not cut it in today’s report.

April WASDE is setting up to be a snoozer by the market action so far.

There are changes to be made on the demand side and SA production and other than soybean exports they will be friendly.

None will be surprises for the market but should be supportive if they choose to adjust it today.

Conab drop corn and soybean production estimates.

Corn 110.96 MMT vs 112.75

Soybeans 146.52 vs 146.85

Bottomline

Inflation is high and demand is not as bad as advertised. Cheap prices always help demand and we need to chew through big stockpiles. South American production estimates are moving lower. We are looking for better prices going into the summer, and we need to be ready to take advantage of any decent rallies. NFC Grain Comments Options -new (35)