Morning Comments, September 21, 2020

Soybeans

Opening Calls:

Corn: 1 to 2 Lower

Beans: 2 to 4 Lower

Markets are starting off the week a little lower. Chinese demand and South American weather have been feeding the bull market, but with - the funds having significantly large positions on the long side going into harvest, uncertainty in yields, rain possibilities in the forecast for parts of South America, outside markets trading lower, political uncertainty over Covid-19 infection rates and the death of Justice Ginsburg - the markets look ready to take a breather from their run, at least for now.

As harvest continues to ramp up, the trade will be closely watching yield numbers along with export sales and South America's planting progress. Bulls are talking about a demand-driven market and will need to continue to see strong exports especially from China along with the potential for La Nina to trim yields in South America once the crop is planted. Bears are still quick to point out the 2.0 billion-plus carryout in corn, favorable weather for the U.S. harvest, yield numbers a little better than expected, and South America still has the potential to raise a normal yielding crop.

President Trump has announced another CFAP program to help producers absorb the costs related to the COVID-19 pandemic. You can apply at your local FSA office. Details are on our website. Contact your local GMA to assist you in tying this program into your marketing strategies. We are here to help you maximize your business potential and have several contract options to help you in your marketing decisions.

**PLEASE NOTE** The phone number 877-778-2226 will be retired at the end of September. We are encouraging people that use this line to contact their local Landus location or their local GMA. If you need a phone number for either, it is available on our website.