Corn Up 6 to 8 cents
Beans Up 11 to 12 cents
Both corn and soybeans rallied yesterday and traded higher in the overnight. The sudden strength in the markets is coming from several factors/rumors. The global spread of COVID-19 is causing some concern over exports globally as the trade watches how countries such as Argentina and Brazil will handle the logistics and economic fallout of quarantine. There are also rumors that China had secured up to 6 cargos of U.S. corn this week, the U.S. will be purchasing crude oil for the Strategic Petroleum Reserve, and delays in the Argentine port activity which mainly affect the soymeal market.
With all of these factors, it appears that supply is starting to be a focus of attention for the trade. While this is helping the markets we are still looking at dismal export sales, the possibility of ethanol plants slowing or stopping production, a large soybean crop in South America, and the potential for a large corn crop being planted in the U.S.
With the current volatility now is a good time to talk with your local GMA on offers and marketing strategies on both old and new crop. Let us know how we can assist you.