Morning Comments December 11, 2020

The December WASDE report was pretty much as advertised: no major changes. For corn, no changes at all as the Ending Stocks number remained at 1.702 billion bushels. Even though there were no changes to exports, the USDA did increase Chinese imports for corn from 13 million metric tons (mmt) to 16.6 mmt. So, that 138 million bushels are apparently being decreased for another country’s exports? I guess that’s the message we’re supposed to receive, but we’ll see if it might lead to increased U.S. exports at some point. 

For soybeans, the USDA increased domestic crush by 15 million bushels which seems to make sense. This led to a reduction for Ending Stocks by the same amount, taking it from 190 million bushels to 175 million. 

Prior to the report, both corn and beans were trading higher. Immediately after the report, they both backed off significantly, and by the end of the day, March corn had lost 2 1/2, after being almost 4 higher earlier in the day. January soybean futures lost 5 3/4 for the day, even though they were about 20 higher prior to the report. 

Opening calls:

Corn steady to 1 lower

Beans 4 to 5 higher 

Over the next couple of weeks, we’d expect the board to continue to bounce around. As we get closer to Christmas and the New Years holidays, we should expect some profit taking as we wrap up this calendar year and some (many? most?) traders take some dollars to the bank and reduce their long positions. 

Reminder, the annual Landus meeting will be done virtually this year on Monday, December 14th at 4:30. It’s not too late to get registered for this event. To do that, you can go to our website or use this link: https://www.landuscooperative.com/news-events/blog/landus-annual-meeting-going-virtual

There is also a link on the website to review the Section 199A webinar for anyone interested. It is here: https://www.landuscooperative.com/news-events/blog/section-199a-webinar-re

And finally, if you have not already heard, we are now accepting corn on FREE Price Later at most of our locations where we have extra space. Please contact your local facility for complete information. 

Resources

Annual Meeting Invite

Reminder, the annual Landus meeting will be done virtually this year on Monday, December 14th at 4:30. It’s not too late to get registered for this event. To do that, you can go to our website or use this link: https://www.landuscooperative.com/news-events/blog/landus-annual-meeting-going-virtual

Register for Meeting

Section 199A Resource

There is also a link on the website to review the Section 199A webinar for anyone interested. It is here:

Watch Webinar

Free Price Later

Available now for corn. Visit with your location on space availability.

Contact Your Location