Morning Comments October 29, 2020

Sillouette Harvest Sunset

Opening Calls:

Corn: 2 to 5 cents lower

Soybeans: 2 to 4 cents lower

Corn closed 14 1/2 lower yesterday as global energy demand is weakening with the fear of global lockdowns and improving weather in South America. U.S. ethanol production last week rebounded to 277 million gallons vs. the previous week of 268 million gallons but was still down 6.3% compared to last year’s same-week production of 295 million gallons. U.S. ethanol stocks fell to the lowest since the last week of 2016 at 823 million gallons. Even with the downturn the last couple of days, the market remains fairly well supported as there is talk of China buying U.S. DDGs and ethanol, along with La Nina is South America. 

Soybeans are trading lower as traders are liquidating long positions going into the election week. South American weather concerns and Chinese demand should continue to provide support for the soybean market through the winter months, but with political uncertainty, the markets will be volatile short term.