Morning Comments January 6, 2021

Corn emergence 2

The beat goes on….managed money continues to buy commodities. Prices are stronger here at the am pause, but are off the overnight highs. Managed money has near record long position in soybeans, and corn is not far behind. Palm oil making another new contract high, now at the highest level in 10 yrs. Crude oil futures trading above $50 for the first time since pre-Covid. Argentina port labor strike was settled a few days ago, but grain inspectors union remains on strike, and Argentine farmers joining in with a 72-hr strike to protest the govt suspension of corn export licenses. Argentine weather remains mostly dry and continues to stress crops, while Brazil has better rainfall forecast in the next 10 days. Add in the US politics this week, and there is A LOT going on out here. 

Jan12 WASDE report is creeping closer. Will need to be pretty bullish to sustain current prices. The market today is trading lower US yields and higher demand via corn exports and soybean crush. Result is lower carry-outs on both corn and soy. 

Market volatility will continue here for awhile, making use of offer contracts a great way for us to monitor quick market moves for you….day or night. 

Opening calls:

Corn up 3-5

Beans up 15-20