Traders are keeping a close eye on South American production. Van Ahn and Company market analyst Kristi Van Ahn says private estimates are starting to add in more production for Brazil. “The last few days, we’ve seen private estimates start to creep up toward USDA’s numbers. If there’s a good crop, what does that do for our structure in this market? If there’s a good crop in soybeans, we’re probably going to follow up with a decent corn.” Van Ahn says carryout is tight enough to need a big crop from Brazil. “To see a cancellation really impact us for old crop, we’re starting to pass that mark. The big question remains what does that do for new crop? How much can China buy from South America and do they buy as aggressive with the new crop? Right now, the market is trying to get acres.”
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