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Technical movement was big today, so it should come as no surprise that the July corn closed at 4.52 right at where the 10, 50 and 100 day moving averages converged. December corn fell short of its convergence of 4.72-4.75 when it closed at 4.69 1/2. July soybeans closed at 12.00, right in the midst of its averages that range from 12.00-12.08 1/2. November soybeans continue to lag from its averages that range from 11.79-11.86 at 11.67. July wheat remains above its 50 and 100 day moving averages, but the margin is closing quickly with all of these low finishes. (1 month low)
Exports sales today did not stir up too much excitement. Corn sales were actually at the top of expectations, which begs the question on whether the USDA old crop export projection may be too low (Shoutout to Mexico!!). Soybean sales were at bottom of expectations, while new wheat sales were better than expected, but worst than expected for old crop. We also saw confirmation of that a daily flash sale was reported today for 152,000mt of corn to unknown for 23/24.
The biggest story today revolves around Brazil. The Brazilian government this week announced new measures for use of tax credits and closing tax loopholes, directly affecting the country’s Ag sector and exporting companies. That means that soybean processors and biofuel producers will essentially have higher tax costs, reducing margins. That loss of revenue is expected to shift some crush and biofuel activity to Argentina and to the US. The uncertainty of this move has firmed up Brazilian bids today, making The PNW in the US the most competitive option for soybean buyers today.
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