Disappointing rains in Argentina along with recent strength in wheat are both helped push prices higher overnight and into this morning. We closed last week on an uptick with March corn futures up a couple and Jan soybeans up 7 3/4. With Argentina missing most of the expected rain over the weekend, many are expecting a reduction in their corn crop estimates by 6 to 8 million metric tons, or around 275 million bushels. This could push U.S. corn exports higher and reduce the resulting Ending Stocks by 2-300 million bushels. We’re a long way from that happening, but it could happen in the next couple months.
For soybeans, more of the same as well, as volatility continues. South American weather and Chinese purchases (or lack thereof) will dominate much in the soy complex. There continues to be tightness in most vegetable oils, and soy oil is taking another run at 40 cents/pound. This morning, it’s higher, but still below 39 cents. If it breaks through 40, we should expect futures to top $12, but that has been a fairly significant obstacle so far. Most likely, if it happens, it will be with the March futures, and may take until we get into January to do so.
Corn 2 to 3 higher
Beans 10 to 12 higher
Final reminder: the Landus Annual Meeting will be held on line beginning at 4:30 TODAY. It’s not too late to register, but you’ll need to do that prior to the start of the meeting. Click here to register: https://www.landuscooperative.com/news-events/blog/landus-annual-meeting-going-virtual