Morning Comments November 6, 2020

Harvesting Soybeans

Opening Calls:

Corn steady to 1 higher 

Beans 1 to 3 higher 

The corn market closed higher yesterday with support from weakness in the U.S. dollar index, expectations that U.S. corn exports will continue to increase, and continued dryness in the Argentina and Brazil forecasts. China is also admitting a need for U.S. corn as feed shortages have been reported. Corn is steady to slightly higher this morning with the market taking a break after the run-up. Macro markets are also losing steam, and that may limit corn price increases as well. Corn will continue to have support from continued strong demand for U.S. corn and weather concerns in South America. Support for corn should remain into the early winter months. 

Soybeans rallied Thursday with all contracts pushing up to make new contract highs. Most importantly, the November and January futures were able to close above the $11.00 resistance. Solid export sales and a rally in the soy oil market continues to support the bean market. Bean oil traded to the highest level since January and the fundamental outlook on proteins like soy meal and vegetable oil is exceptionally bullish. Beans are trading higher this morning with record large export commitments and La Nina driven dry South American weather. November NASS and WASDE reports come out Tuesday and we expect to see a decrease in the U.S. soybean carryout. 

**Reminders**

Tuesday’s WASDE report could lead to some price swings next week – please get your offers in ahead of the 11 AM release. 

Wednesday is Veteran’s Day, which is a federal holiday. However, the Board of Trade will be OPEN. 

Stay tuned later this afternoon for our FREE weekly podcast, the Bull Bear Banter, as well as our end of the week comments that recap the entire week’s actions.