Beans: 1 to 2 lower
Corn was able to find some support yesterday based on improving weekly export sales. Expectations for rainfall in Argentina over the next few days combined with uncertainty over the U.S./Russia trade talks and concern that the USDA’s export projection is 50 100 million bushels too high is keeping the rally limited. Another factor weighing on traders' minds is the potential size of the 2020 corn crop. 94 millions acres and trendline yields will lead to a 3 billion bushel carryout burying the U.S. in corn. Producers need to watch the Dec 2020 futures and make sales at levels that make sense for their business.
Soybeans lost their strength from the overnight yesterday even with better than expected export sales. Fund liquidation continues as the trade waits to see if the trade talks will proceed. The Dec. 15 deadline for additional tariffs is fast approaching and no one wants to be caught on the wrong side. This combined with bean export business expected to move to South America in January/early February is keeping a lid on soybean values.
Be sure to discuss your marketing options with your local GMA to help identify and manage marketing risk. We offer several contracts that allow you to move grain now while staying in the market.