We are again starting to see a shift take place in the commodity market. Harvest of the initial crops in South America is coming to an end, and more interest is now on the planting and growing season in the United States.
This doesn't mean South America is no longer a factor in the markets, as we are still waiting to see the yields for the Safrinha corn crop in Brazil.
This was a record last year and gave Brazil its ability to export large volumes of corn and pressure the U.S. export market. It is thought the crop may be smaller this year, which would likely reduce Brazil’s export ability. This is especially the case with that country needing to rebuild its domestic corn reserves.
We are also starting to see a split in attitude when it comes to soybeans and corn. The world market has an adequate supply of each commodity at this stage, especially soybeans....