The United States Department of Agriculture (USDA) on Monday reported an increase in export inspections for corn. Zaner Ag Hedge market strategist Brian Grossman says the weekly inspections report created a fair amount of excitement.
“Soybeans, okay. Four-hundred-seventy-thousand less than what we need on a weekly basis to reach our target,” Grossman said. “The big one out there was corn, (at) 1.7 million. (That’s) helping keep these markets a little positive, at least for corn. But, soybeans (are) not liking the weather or the lower sales.”
Grossman says weather forecasts are starting to drive the futures market and export sales.
“The forecast is starting to improve,” Grossman said. “It looks like we’re going to be able to get out in fields hard and heavy over the next couple days. A week to two weeks ago, we were getting real concerned about planting delays. I think a lot of those fears are going away today.”
Sales continued to climb after the report’s release, early Monday morning. Grossman reports numerous sales made in South America.
“Scrolling down, a lot of South American numbers. Colombia taking 223,000 metric tons, which is encouraging to me,” Grossman said. “South American countries (are) picking up some grain because there is talk that Brazil’s starting to get a little on the dry side,” Grossman said.
Grossman encourages growers to keep an eye on the forecast moving forward. Soybean futures on Monday were taking weather reports “on the chin.” However, Grossman notes farmers have a lot of planting left to do.
“We’re going to be focused on what kind of a May, June and July we’re going to have. We cannot discredit South America. Brazil is planting their winter crop and they’re on the dry side,” Grossman said. “While we love to talk about the U.S. because it’s our backyard, Brazil is still going to be a factor.”