Morning Comments December 22, 2020

Red Barn Behind Field

Grains trading higher this morning after soybeans led the way with a strong double-digit rally yesterday. Corn, beans, meal and soy oil futures all made new contract highs during the overnight trade. The wage strike continues in Argentina, stretching a second week and paralyzing exports. More than 100 ships are waiting to be loaded and sources close to the situation doubt a resolution will happen before Christmas. The weather outlook is mostly unchanged for South America, with Southern Brazil and Argentina will continue to see mostly dry weather dominating the region for the next 10 days as temperatures warm into the Christmas holiday. 

Domestically, the latest Covid relief bill includes $13 bln in food purchases and direct payments to the farmers, according to details released by Sen. Debbie Stabenow. The bill earmarks $5 bln to row crop producers at $20 per acre and another $3 bln to livestock producers who had to euthanize animals during the pandemic. The monies add to the $46 bln the government has already paid producers this year, making this the most profitable year for farmers in 7 years. 

Opening calls:

Corn: 2 cents higher

Beans: 6 cents higher