Corn: 1 to 2 higher
Soybeans: 2 to 3 lower
The corn market closed a touch higher yesterday as we wait for the weekly ethanol production and stocks report to be released this morning. Traders are hoping for another increase in production this week, and the good news is as the economy is opening back up, gasoline demand should increase as well.
The soybean market closed slightly higher yesterday following the soybean oil market. July soybeans oil made a new 7 week higher yesterday which was caused by higher palm oil prices. Yesterday soybeans also able to trade above the 50-day moving average, but did not close above it. Concerns remain about the trade tensions between the U.S. and China and there is still some fear that it could jeopardize the phase-one trade deal.
We received word from the FSA offices regarding what is considered to be in inventory as of January 15th. They are now saying that bushels in the elevator on Price Later or Extended Price contracts qualify as “inventory” and are eligible for CFAP payments, up to the 50% limit of production.
As we have seen corn prices trickle-up this is a great time to be working with your GMA to be working offers for old crop especially. Use these new government funds to help supplement your cash sales to get you closer to your goal prices.