Morning Comments, September 23, 2020

Boxholm harvest

Opening Calls

Corn: 2 to 3 lower

Beans: 2 to 3 lower

Continued sales to China in both corn and beans were overshadowed by profit-taking as harvest is underway, taking the markets lower yesterday. The trade is focused on Chinese demand, South American weather, U.S. harvest pace/progress as well as ethanol production/demand. With gasoline consumption being negatively affected by COVID, ethanol looks to be facing some headwinds going forward. Markets trading lower despite export sales appears to be a function of markets having a hard time rallying into harvest. The talk of a demand-driven market will need to be seen over the next couple of months to keep prices steady to higher. We should also see some positioning before the USDA September stocks report that will come out on the 29th.

The House has passed a short-term spending bill that will keep the government funded through Dec 11. It includes 21 billion dollars for the Commodity Credit Corp as well as 8 billion in additional nutrition funding for struggling Americans. The bill is expected to pass the Senate quickly avoid a partial shutdown next week.

With harvest ramping up and the yield slide that was expected stabilizing, now is the time to be speaking with your local GMA to discuss marketing alternatives for the grain you will bring to town as well as what is the going bin. We have several contract offerings to help your business manage its risk going forward.

**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, they are available on our website.