Morning Comments, July 17, 2020

Agronomy Sprayer

Opening calls:

Corn up 2 to 3

Soybeans up 2 to 4

The corn market moved higher yesterday on solid export sales, being the highest in 9 weeks and significantly above where we were at this time last year. South America and the Black Sea threaten to be a cheaper option than Gulf corn, potentially turning sales to them. As COVID-19 numbers continue to rise, there is the possibility of re-closing down some states, which could potentially slow ethanol production again.

Beans moved higher on the announcement of Chinese sales of 7 mil bushels old crop and 25 mil bushels new crop, but weather and yield are going to be the huge factor in maintaining this rally. With the funds sitting on a large long position in beans, the good news will have to keep coming for them to continue to hold it into August.

Have a great weekend and stay cool.