Morning Market Direction:  Corn and Beans down 3-4

Grains and oilseeds all start Friday on the weaker side of trade. Volume has been light across the board.

This morning will see the release of weekly export sales data.

Overnight tender activity was quiet on the global front. Corn basis and spreads remain firm domestically though yesterday’s board rally did increase flat price movement and perhaps will satisfy some nearby end user basis needs. Quality continues to be an issue with many shippers.

YTD corn exports are just 18% of the USDA’s Jan forecast; that’s a 32-year low. However, the two prior lows at 20% in 15/16 and 17/18 saw the final total come in 199 and 513 mbu HIGHER. Brazil’s safrinha crop development is paramount. Planting of safrinha (double crop) corn in the state of Parana will be delayed due to the delayed soy-bean harvest. Soybean planting in Parana was 2-3 weeks later than normal; thus, harvest will start 2-3 weeks later.

Heavy rains affect central & northern Brazil the next two weeks, initially as a cool front drapes across the region & triggers thunderstorms each day over the next week, then as another front passes in 10-14 days.  Southern Brazil will be dry & cool until thunderstorms produce 1.00”-3.00” in a week. Argentina will be dry & cool into at least Tue., followed by some rain, but most focuses north & less-so in key southern areas where dryness slowly unfolds, though a wide area is currently moist.

Look for a choppy day with cash and basis more dynamic than outright futures changes. Have a nice weekend!

Summary Items:

Markets are lower on light volume.

World Health Organization says no global emergency yet.

Corn - $4.00 Spring    

Beans - $9.54 Spring