Morning Comments March 17, 2020

Harvesting Soybeans

Early Calls:

Corn: Steady/ Mixed

Beans 3 to 5 higher

COVID-19 is still front and center in traders' minds and yesterday we saw both corn and bean markets trade lower. The oil price war between Saudi Arabia and Russia resulted in gasoline futures hitting lows not seen since 2005 which is having a negative effect on ethanol blending margins. Weather forecasts adding rainfall to the dry areas of Brazil are also weighing on the markets.

Equity markets are trading higher this morning and the hope is that this will bleed over into the corn market. Soybeans are trading a little higher this morning based on higher than expected crush numbers for February. However, world corn supplies are abundant and the trade continues to be concerned about the potential size of the 2020 corn crop. 94 to 96 million planted acres and a trend line yield could see the carryout swell to nearly 3.0 billion bushels. On beans, export numbers continue to remain weak on the absence of any Chinese buying.

With all the uncertainty in the markets, now is a good time to speak with your local GMA on marketing strategies for both old/new crop corn and beans. Let us know how we can assist before you get too busy in the fields.