Morning Comments October 22, 2020

Bin sunset harvest

Opening Calls:

Corn: steady to 1 higher

Beans: steady to 2 higher

The corn market closed higher yesterday, again breaking through to new highs with the December contract up 5 at $4.13 3/4. Corn traded mixed overnight and into this morning, taking a pause as we wait for the weekly export sales to be released later this morning. Cash markets in Brazil and the Ukraine continue to remain high, keeping U.S. corn exports competitive as it’s currently the cheapest in the world marketplace. Traders will continue to keep an eye on Midwest weather slowing harvest and the rise in COVID infections, which would affect the energy and ethanol markets.

Soybeans also closed higher again yesterday with the January futures contract up 7 at 10.71 1/2. Chinese demand appears to be strong for now, and with Brazil low on bean stocks, bulls appear to be driving the market. Soybeans traded higher overnight and into this morning as South America continues to struggle with weather, and not getting into the fields. The soymeal market also continues to rally.