Wednesday April 22, 2020

  • Corn and beans dug out new lows yesterday, rebounding off their lows by the end of the day, finding support in some bargain buyers this morning 
  • Corn May futures (old crop futures) matched the lowest level since 2016 during trade yesterday at $3.01/bu – it hasn’t’t been lower, or below $3.00 futures in more than a decade 
  • Reports of bean sales to China also helping to encourage the bean market this morning 
  • Brazilian soybean exports have ramped up this spring – in March a record 13.5 MMT were exported and they are on pace to set a new record for April at 14.5 MMT and hoping for at least 10 MMT in May 
    • So far this year Brazil has exported 24 MMT of soybeans compared to 20 MMT in the same period last year 
  • Dry weather set to continue for Brazil’s safrinha corn for the next 10 days sparking yield concerns for about a third of the country’s crop 
  • Major grain player Bunge is set to sell 35 of their grain elevators across the U.S. to Japans Zen-Noh Grain Corporation, a move that would drastically reduce Bunges origination’s network across the U.S. 
    • Prior to the sale Bunge owns 158 grain storage facilities globally 
    • Bunge has been selling off non-core assets in recent years as the downturn in grain prices has tightened margins