Your Pro Farmer newsletter (March 9, 2024) is now available

USDA made no changes to its U.S. corn and soybean ending stocks forecasts, but it cut global carryovers. While more market attention was on USDA’s Brazilian crop estimates, those figures remained well above private crop forecasters. Funds covered some of their massive combined net short position in the corn, soybean and wheat markets last week, but remain heavily short. It’s likely going to take a catalyst to trigger a strong and sustained wave of fund short-covering. With new-crop supplies available due to the quick and early harvest, Brazil’s soybean exports surged in February. Meanwhile, China imported far fewer soybeans during the first two months of this year than in 2023 due to poor crush margins, the Lunar New Year celebration and delays in customs clearance at ports. China set its annual economic targets at levels similar to last year. Beijing’s agricultural blueprint includes added funds for grain stockpiling, broader crop insurance for grain farmers and stabilization of the meat and dairy industries. China also touted its progress in the electric vehicle industry. We cover all of these items and much more in this week’s newsletter, which you can download here.