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March Soybeans, Wheat and corn all closed below the 4, 9 and 18 day simple moving averages today, with corn and beans finding a new low. Beans were sucked below and closed under the $12 technical threshold. We don’t have a major bullish story to run with, but the markets have already factored in a lot of bearish news.
Commodity Weather Group in mid-day forecasts reported wetter extended forecasts for both Brazil and Argentina, building on already-promising rains in their morning maps, as rains build back into northeastern Brazil during the 6-10 day and southwestern Argentina during the 11-15.
Export inspections today were as expected for corn and beans, and poor for wheat. Marketing year soybean export inspections to date fall short of the seasonal pace needed to hit USDA's target by 68 million bushels, versus being short by 53 million bushels a week ago (-24% from the previous year's pace). (Brazil shipments continue through our traditional peak shipment season, stealing market share away this year.) Marketing year to date corn export inspections exceed the seasonal pace needed to hit USDA's target by 18 million bushels, up from 17 million the previous week. (30% from the previous year's pace due to cheapness). Marketing year to date wheat export inspections fall short of the seasonal pace needed to hit USDA's target by 54 million bushels, versus being short by 52 million bushels the previous week.
Funds were thought to have been all sellers today.
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