The Bullishness of the US situation is tempered by the Global outlook.
The USDA is pinning tonnes of hope on the S.American crop and starting the bidding with a large crop size.
The job of the Bean/Corn markets going forward is to price an appropriate rationing level (somewhere above current levels basis this report) and to then start to handicap the S.American crop (basis weather and acreage reports) over the next 5 months.
Will be an interesting year – as always. Today’s close important as these two perspectives (Bullish rationing vs Bearish S.American potential) were presented to the market today and it initially focused on the former with a strong open.