Corn: 3 to 5 lower
Beans: 7 to 10 lower
The corn market is trading on the news of no new Chinese business, ethanol woes, South American weather, and the U.S. harvest getting fully underway. China’s ag minister has commented that China has more than enough corn supply for the 2020/21 crop year. As we have stated in earlier reports, we need to see continued Chinese demand to support the markets and we will have to wait and see if China will start buying again in the near future. Ethanol production is running behind its normal pace by 5 to 10% and may have a hard time recovering until COVID gets under control. The trade will be closely watching planting progress and weather in South America as the La Nina potential still exists to hurt the crops going forward. Weather-wise in the U.S., it looks like we will have a good window for harvest activity and look to make steady progress. With all of these factors, it looks like the trade is taking back some of the risk premium they had built into the market.
In soybeans, traders are worried about increasing tensions between the U.S. and China as the House has passed a bill to ban goods made in China from forced labor. Harvest is progressing with good weather and we are seeing beans being sold off of the combine with the recent rally. On the bullish side for beans, there is talk that Argentina may plant fewer acres due to the weather and obtaining additional funding and the bulls are still banking on additional Chinese Buying.
With the recent pullback from the highs in corn and beans, talk to your local GMA to assist you in managing your business risk going forward. We have several contract offerings including flex delivery to help you maximize your selling potential.
**PLEASE NOTE** The phone number 877-778-2226 will be retired at the end of next week. 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.