Morning Comments April 23, 2020

Soybeans Farnhamville

Good morning,

Opening Calls:

Corn: Up 3 to 4

Beans: Up 7 to 9

Yesterday ethanol stocks came in lower with production coming in higher, causing a nice bounce in the corn market. Ethanol production stabilizing should help corn stabilize as well, especially if crude oil remains above the most recent lows. The corn market is up today as it continues to correct its oversold condition. The release of the USDA’s weekly export sales report is out this morning. US corn planting is progressing well, but now Brazil has some concerns of dryness. 

Beans are also up after yesterday's news of a sale from the US to China. USDA announced an old crop sale of 7.3 million bushels, however, this is the lowest sale in 4 years to China. Continued concern about the size of crop in the US and South America indicates there will be no shortage of beans in the world.