Morning Comments December 9, 2019

Grain bins dryer

Opening Calls:

Corn: Steady to down 1

Beans: 6 to 8 higher

The corn market is trading steady to slightly lower this morning with a better weather forecast in the near future for the Argentina crop, and lack of positive new news in the market place. US exports remain down from last year and there is an expectation that the USDA will reduce the projections again in Friday’s WASDE report by 50 to 100 million bushels. A trade deal between the US and China continues to be stalled and there does not look to be a shortage of US corn in 2020. On the other spectrum, bulls continue to hold out hope that the January USDA report will show a reduction in the yield estimate by 1 to 2 bu./acre and keep a close eye out for production problems in South America. 

Soybeans trading higher this morning as funds became oversold last week and prices recovering slightly after 12 weeks lows. Friday a StatsCan report reduced the estimate for Canadian canola by 3.6% which lead to stronger buying in the US bean oil market. Chinese demand for US beans is slowing as they switch to the South America crop, reducing exports and limiting rallies. 

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