Morning Comments December 29, 2020

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Yesterday, the big story was corn, completing it’s 11th day in a row of higher closes. March futures gained 5 1/2 to finish at $4.56 1/2 and only a penny off of the high of the day. During the day there were export sales of almost 5.9 million bushels to “unknown” destinations. 

Soybeans finished yesterday lower, January futures losing 8 1/4, and closing at $12.55 1/4. The ongoing strike in Argentina appears to be coming to an end soon. There are also reports of some decent, albeit scattered, rains in parts of Brazil. One analyst is cautioning U.S. producers that if the rains persist, soybean prices may continue to erode until their harvest is over and we all have a better picture of total production. 

Wheat also closed lower yesterday with pressure coming from forecasts for more precipitation (rain/snow mix) across U.S. wheat growing regions. 

Opening Calls:

Corn steady to 1 lower 

Beans 4 to 6 lower 

The next WASDE report will be issued by the USDA on January 12th. After the disappointing December WASDE, it feels like traders are expecting some relatively strong adjustments in the next report. We should expect changes to both supply and demand. Our advice: Keep pricing any spikes and using offers.