Morning Comments January 8, 2021

Soybean Field Sunshine

Technical chart support levels were tested yesterday for both corn and beans, but look to be holding as prices moved back into the green overnight. Corn basis levels have weakened 5-7c in the WCB since last week on a combination of great weather for hauling grain, sporadic farmer selling, and continued negative ethanol margins. Many locations nearly full, as it feels like all the January contracts wanted to make delivery in the first week of the month. Believe that markets may continue dealing with this until weather worsens or additional selling shuts off. 

Export interest continues with China buying 4 cargos of US beans this morning, also have interest in April/May corn and new crop soybeans and sorghum. Jan12 WASDE report next week, market will be very anxious to see this one. Also have quarterly grain stocks report along with this, so will be a lot of data to digest next Tuesday. Prices today are already trading bullish report numbers, so be wary of the old “buy the rumor, sell the fact” price action. Managed Money has record long positions in soybeans, soybean oil, and a near record in corn. 

Opening calls:

Corn up 2-3c

Beans up 10-14c