Morning Comments, October 21, 2020

Full Moon Over Location

Opening Calls:

Corn: 2 to 4 higher

Beans: 8 to 10 higher

Good Morning. Corn closed higher yesterday with the December contract up 3 1/2 at $4.08 3/4. The market is finding support from weather conditions across the Midwest slowing harvest progress and the U.S. remains one of the cheapest suppliers of corn. Corn is trading higher again this morning as South America continues to struggle with weather. The weekly EIA ethanol production report will be released today with an expectation that production will fall slightly below last year’s number for the same week. Traders will continue to keep an eye on the rise in COVID numbers and it’s the effect on the energy markets.

Soybeans also closed higher yesterday with the January closing at $10.63 3/4. This morning, soybeans are trading 8 to 10 higher as the USDA announced another export sale of 4.9 million bushels to unknown destinations. South America continues to struggle with weather and exports have continued to be strong, however, bears are quick to point out that Chinese demand for U.S. beans seasonally slows very soon. The meal market remains strong from concerns of the Argentine crop due to La Nina as a large portion of their crop is exported as meal.

We continue to encourage sales during this rally. Whether for bushels in the elevator or in your bin, let us know what your targets are and we’ll get some offers working for you.