Today’s Prices
Grain markets finished a little higher today as the forecast has removed some of the rain from the Argentina forecast.
Grain Market News
Corn Production
Looking at Brazil and Argentina combined, in the December crop report the USDA projected corn production at 181 million metric tons.
That’s up significantly from last year and its up 1.65 billion bushels from the drought reduced level 2 years ago.
Soybean Production
Soybean production combined in Brazil and Argentina; USDA forecasted at 201.5.
That’s up over 30 million metric tons from last year, that’s an increase of 1.124 billion bushels more than last year.
South American Precipitation Forecast
The first week of the forecast shows dryer than desired weather in Argentina, adjacent areas of Brazil, Paraguay, and Uruguay.
Rain has been reduced from the forecast for the coming weekend.
Looking at the second week there is some scattered rain in Argentina but for the most part relatively light.
Precipitation
Looking at an anomaly for precipitation, this is today December 20th through Wednesday December 28th.
Argentina is still below normal precipitation extending into Paraguay, Uruguay, and southern portions of Brazil.
Temperature Anomaly
Today through December 28th, Argentina is still looking at above normal temperatures.
Some of that warmth expanding in adjacent areas to the north and east.
GRACE Soil Moisture
Most of Brazil is in good shape while most of Argentina is extremely dry.
Looking at vegetation health index compared to a year ago, Brazil’s growing region has some a little better and some a little worse.
Looking at Argentina generally they are much lower on the vegetation health index.
Observed Surface High Temps
Yesterday’s high temperatures show low to mid 90s in Argentina while Brazil is primarily in the upper 70s and 80s.
That’s ideal for Brazil while it’s still too warm for Argentina.
The forecast continues in a similar pattern the next few days.
Grain Market News
Thursday’s Low Temperatures
This shows below zero temperatures all the way into Kansas with double digit negatives in eastern Colorado and Nebraska.
The areas without snow cover are at most risk of seeing damage due to extreme cold.
December Corn Chart
Corn prices continue to be very choppy.
Prices rallied into early last week to a high of 6.60 and since then the market has pulled back.
This leaves mixed signals on the chart as well as the technical.
This market continues to challenge overhead but has yet to break out to the upside.
November Soybean Chart
Soybeans have recently become very choppy with no clear direction.
No solid indicator bullish or bearish in chart and technical.
The market is waiting for fresh news.
December KC Wheat Chart
Wheat prices also chopping back and forth with no clear direction.
It does appear we may have made a significant bottom 2-3 weeks ago at 8.21.
But after initial rally to 8.79 the market has pulled back and become very choppy.
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