Morning Comments December 21, 2016

Good morning!  Nice to see it warm up a little this week. Maybe we won’t have a white Christmas after all?!

 

Grains are mixed this morning with corn down a penny and beans trading 4 cents higher.  The trade is seeing some bargain-buying and short-covering this morning after we’ve moved lower in the bean market.  Soybeans seeing much pressure from recent Argentina rains (with more coming to them today) and our stronger U.S. dollar which hit fresh highs yesterday.  Trade volumes have been getting much lighter as we near the Christmas holiday and as farmer selling has seasonally been extremely light.

 

AgRural estimates Brazil’s 2016-17 winter corn crop at 59.9 MMTs, up from 40.7 MMTs last season.  This leads to even more corn supply to our global market.  China also plans to further cut corn plantings next year in areas of low productivity to help the huge surplus of corn inventory.  China is the world’s #2 producer of corn and as we know they are sitting on large stockpiles of extra corn that still needs to move into the market.  China still remains a player of our exports, still showing lots of interest in U.S. grains.  Hope that continues.

 

I am in Hamlin today, give me a call at 712-250-0344 to chat about markets.  Insight program is still open for enrolling bushels, get ahold of your local grain marketing advisor to learn more.  Have a great day!