Corn
The corn market is stuck between a firming wheat market and a declining soybean market. If you look at traders’ expectations they are not looking for much in the way of changes for the Supply-Demand. My Opinion – if there is change a hike in domestic usage will offset any hike in production. If there is no change in production the hike in domestic usage could easily take the carry out noticeably below the 2.400 billion bu. mark.
Soybeans
The soybean market is all about the idea CONAB will increase the Brazilian soybean crop in tomorrow morning and the USDA will hike the US carryout on Friday. A possible wild card for the weekend is the Argentine forecast as they are expected to see critical timely rains over the weekend. If these forecasted rains fail to appear then the trade will react in a bullish manner Sunday night, Monday morning.
Wheat
The wheat market is all about the probable draw down in winter wheat acres as well as the questions around possible winter kill. Adding to that ABARE (the Australian version of our USDA) adjusted their 2016-17 wheat crop down 3.0 M T. This will be reflected in the World carryin which in turn impacts the projected World carryout. Current trader expectations have not accounted for this.
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.