Soybeans and meal were the strength of the ag markets on Monday while wheat and corn came under pressure shortly after the open. Soybeans and meal held firm as many analysts and crop scouts are beginning to pencil in crop losses in Brazil based on southern Brazil dryness. Stone X, has reduced their estimate for Brazil’s soy crop to 134 mmt (4.92 bb). That would be 10 mmt (367 mb) lower than the December WASDE report. All three crop markets are overbought and even though we saw new money flow on Monday, some profit taking was seen in wheat and corn with wheat down double digits. Deferred corn contracts were firm as they took stock in the South American weather issues as well. Meantime, livestock were choppy and quiet as they look for direction to start 2022.
Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
Also, more analysis with Jesse Allen and John Heinberg from Total Farm Marketing on today’s Market Talk below: