Morning Comments February 11, 2021

Tractor Winter Oil Painting Vf

The grain markets have bounced back a little on the overnight, attempting to regain some of yesterday’s losses despite increased production forecasts in Argentina and Brazil. Logistics and weather concerns remain prevalent in South America, and the U.S. will continue to export grains until they regain some clarity. 

Minimal fresh news, a corn export sale cancelation and profit-taking are possibly the main reasons why nearby corn and beans closed down 22 and 48 cents respectively yesterday. Many in the trade still believe that the funds are here to stay as inflation fears rise and they look to hedge their risk. Trading days like yesterday provide them solid buying opportunities; it’s just a function of when and where they decide to get in next. 

The polar vortex will continue to make logistics difficult for the next 5–7 days. After the temperatures warm up, the market will determine just how disruptive it was to grain flows.

Opening Calls:

Corn: Steady to down 1c

Beans: Up 5–8c