All reports on stock trading emphasize the drop in corn prices over the past ten days.
Traders enthusiastically welcome the events on the stock exchange and hope for further declines in prices for both corn and other grains.
The price drop can be attributed to the good condition of crops in South America and favorable forecasts for America. The weather forecast for Brazil and Argentina is stable, so there are no bad news that could trigger an increase in corn prices.
There are also expectations that the reports to be presented at the Ag Outlook Forum will encourage an additional drop in grain prices.
Therefore, for now, only bad weather conditions in Argentina, serious delays in port deliveries in Brazil, or a large export order could stop the price decline on the stock exchange.
Prices for soybean grain and soybean meal have also fallen, with the reasons for the downward price trend being the same as those for corn prices. In Argentina, rain is still needed, but for now, there has been enough precipitation in the right places. At the same time, Brazil is expected to experience even too much rainfall, which could delay the start of the soybean harvest and postpone the new planting of second corn.
Favorable weather conditions for soybean grain are expected in the coming weeks, raising the question of how much of a price drop for soybean grain and soybean meal we can expect. It is much harder to predict the further trend of soybean grain and meal due to the long-term ‘tightening’ in the mentioned market, where prices can easily trend upwards.
In the DDGS market, there has certainly been no weakening of prices, but trade experts believe that prices are preparing to drop. Of course, the reason for potential price weakening could be a lack of export deals with China and other Asian markets since the beginning of the year. With the constant drop in corn prices every week, DDGS prices will also weaken, as was the case with corn gluten and flour.
