Wednesday February 9, 2022

  • Markets higher to start the day leading into awaiting the USDA report out at noon today 
  • Report expecting to see a modest decrease in U.S. corn and soybean carryout numbers, wheat virtually unchanged
  • The most anticipated numbers on this report will be the South American production estimates 
    • We have seen private analysts lower their estimates for both Brazilian and Argentine production over the last several weeks so we are looking for confirmation from the USDA that the production losses are as concerning as they have been worked up to be
      • What bullishly we want to see is: Brazil Soy Production under 130 MMT, Argentine soy production low 40’s MMT 
  • Another flash sale of soybeans to China this morning has soybeans back to recent highs