Up, up and away???
Well, maybe not quite like a hot air balloon, but with soybean futures pushing up through $12, and then also closing above that level, it feels like we may have moved into a little different range for now. This is the highest close for a front month since 2016. January beans closed yesterday at $12.01 1/4, up 17 1/2. The overnight session was in the green all night and at the morning break are up about 10 cents. The rally has been led by soy oil and due to shortages in other vegetable oils. It closed yesterday at 39.93 cents/pound and pushed up through 40 cents overnight, ending this morning at 39.88. “IF” this can manage a close above 40 today, it will confirm moving into a slightly higher range.
Corn has been along for the ride, with March corn futures finishing yesterday at $4.32 1/2, up 5 1/4. While the overnight session showed a 2 sided affair, at the morning break, it’s up another 1/4 cent. Another item supporting corn is the crop progress report from Argentina that showed 24% in the good to excellent categories, compared to 45% last year at this time. They are about 55% planted vs. 63% last year. Wheat has also been strong lately, and Chicago March wheat is trading around $6.10, again staying above one of those psychological barriers ($6.00).
Corn steady to 1 higher
Beans 8 to 12 higher
We have seen an uptick of producer selling during the past 24 hours, partly due to the time of year and some people expressing a need for a little cash due to Christmas next week, but also offers hitting and folks pricing the spike. We’d encourage all of you to continue to take a couple of chips off the table at regular intervals while we’re in the top end of this most recent range.
Stay tuned for end of the week comments later today as well as the final Bull Bear Banter podcast of the year.