Corn: steady to down 1
Beans: steady to down 1
In the lower volume, higher volatility period of the trading day, corn prices traded mostly lower yesterday, following the continued weakness in soybeans. Yesterday’s export sales were very favorable for corn at 1.2 million metric tons (48.6 million bu.). That was above the highest of trade expectations. We’ll see if this can boost prices a little today and beyond.
Exports sales numbers were not nearly as favorable for beans at 470,000 mmt (17.3 million bu.). This number was at the lower end of trade estimates. For the year, the cumulative total is still 43% above last year. The low export sales reignited fears regarding the lack of evidence of China being in the market as a buyer. Soybean planting has been reported as complete in Argentina and 97% complete on corn. Mato Grasso, in Central Brazil, has reported that 20% of their harvest is complete and coming in at record yields.
As the markets continue to hesitate with the lack of new sales to China and the added risk of shutdowns concerning the coronavirus, it’s important to remember that China was unlikely to be importing much during this time regardless as they were planning on being shut down for the new year. Consumption will still remain steady, it will just continue to work from the storage built up in preparation for their holiday.
Our women in ag conference, Ventures, is fast approaching. This will be held on Saturday, February 15th in Ankeny. Contact your local Landus Cooperative facility for more information, or check out our website: https://www.landuscooperative.com/news-events/blog/ventures-2020 for registration and agenda details.
Stay tuned later today for the latest Bull Bear Banter podcast to hear an update on the entire week's market action. During this episode, we will also have an interview with Dr. Allan Gray, Executive Director of the Center for Food and Agriculture Business at Purdue University.