Corn: 3 to 6 higher
Beans: 8 to 9 higher
The corn market rallied overnight with more news of the phase-one deal. Even though there is still a lot of uncertainty, the stories all seem to indicate that China has agreed to increase their ag purchases by at least $40 billion from the U.S. in both 2020 and 2021. The market is reacting positively but still wants to see a signed detailed agreement.
South American weather continues to be a factor in the corn market. Argentina weather calling for more rain and that may limit the trade inspired corn rally. Beans also rallied with the confirmation of U.S./Chinese trade agreement. Funds are holding a short position, so if they decide to cover that, there could be more upside in the bean market.
There was also some political news from Argentina over the weekend. The new government has followed through with their election promises to increase export levies on soy, wheat, and corn. This makes Argentina commodities less competitive in the world markets, so this could also be good for US farmers.
As always, get your offers in place. If this market continues to rally, we could see favorable levels for both Old Crop and New Crop sales. Contact your local Grain Marketing Advisor if there is more information you would like to have.
REMINDER: the Annual Meeting is this Wednesday in Ames. Please RSVP if you will be attending.