It seemed like beans and especially corn were struggling to hold support and remain in a sideways pattern this week. We would get pushed lower, find buyers under the market and move back into the range. The weather in South America is still far less than ideal, Argentina is the worlds largest soybean meal exporter and a workers strike has the docks shut down, and the weekly export sales were very strong even though there were only a couple daily export sales announcements from the USDA.

So, maybe we were marking time waiting for some new bullish news and it came late in the session on Thursday. After the close I saw there was a sharp quick rally in corn and beans plus we followed through in the overnight session. The first thing I asked Gordy on the air is (not that I was complaining) but what happened. The new bullish news may have been that there was a report in Oil World that some soybean sales in February had been switched from South America to the United States!

 

 

Maybe the market is figuring out we do not have the beans for huge new soybean export sales? Remember, the USDA is projecting our soybean export sales will be a little over 2.2 billion bushel this marketing year. We have already sold just under 2 billion bushel and the marketing year has 9 months left before the next crop begins to be harvested. Using current USDA estimates our bean carryover is around 165 million bushel. Click on the link and listen to Gordy talk about the Ag Markets this last week.

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