Good Morning!

The corn and soybean markets are recovering well this morning after yesterday’s sell-off. You can credit the drop in prices yesterday to technical profit taking which sped up as the day went on and prices broke through support levels.  Prices were also pressured from Pro Farmer rumors/estimates as better than expected corn yield in Illinois and Iowa.  The soybean market felt tippy yesterday as domestic nearby bean basis slipped, triggering long liquidation.

Today feels a little different.  There are whispers in the marketplace that China was an active buyer of US soybeans on the break yesterday which is supporting beans.  This is not a shocker, as they have been consistent buyers on any market setbacks.  Again, the US is the only supplier of soybeans left in the world for China until SA harvests in Feb/March.  Nothing new to report on corn yet this morning, it seems to be a reluctant follower of soybeans so far.

Pro Farmer’s final number will be released this afternoon, around 2pm.

Currently:

Corn is up 3 to 6 cents

Soybeans are up 12 to 18 cents

http://www.fccoop.com/markets/information.cfm