Beans: 1-2 lower
The corn market closed higher yesterday due to short covering. Traders are still looking to see if the March corn contract will push past the 100-day moving average of 3.89. Trade continues to debate how much demand China will have for U.S. corn. However, there is optimism that DDGs and ethanol could be purchased. Argentinian planting progress is 63% complete compared to 60% average, and 28% of the crop is said to be at its silking stage. They are expecting to see timely rainfalls in the next week and trade is beginning to factor in an above-average yield for their production.
Soybeans touched a two-month spot high yesterday after a 70 cent 3-week rally. The USDA announced a small bean sale to China yesterday but inspections came in on the low end of the trade estimates. Not a lot of bullish news heading into the holidays. The forecast for South America looks to be getting timely rains that will continue to keep any supply issues from riling up trade. Trade continues to battle whether or not Chinese soybean purchases will cover what they can’t buy from South America, who’s crop is progressing well, or if additional demand will be found. Chinese purchases will be directed to Brazil starting in February as their new crop comes to the market and purchases are already on the books.
Markets are open until 12:05 pm today. They will resume trading at 8:30 am on December 26th.
We have just opened up enrollment for our New Crop 2020 Averaging Contract. Contact your local GMA if you are interested.
Have a Merry Christmas!