Morning Comments, September 28, 2020

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Good morning!

Opening Calls

Corn: 2 to 3 lower

Soybeans: 2 lower

Friday the December corn contract closed 1 ¾ cent higher, but for the week-long trade, the December contract closed 13 ¼ cents lower. The corn market caught some positivity on Friday ahead of the weekend. With most of the US in harvesting mode, and what appears to be a pretty good crop, it’s not expected that there would be rallies that take the market too far. Corn is trading lower this morning. Yields are coming in a bit better than expected and farmers are making rapid harvest progress. Tomorrow we will see the release of the quarterly stocks report. The report is expected to confirm that the U.S. corn supply is high. The corn market needs to see more increase in Chinese demand, which at the point appears to be unlikely.

Friday the November soybeans contract closed 2 ½ cents higher, but for the week-long trade, the November contract closed 41 cents lower. The potential for an upside in the bean market will continue to be limited with harvest pressure, although there are still dry conditions in Brazil that are attracting attention. The soybean market was supported by an announcement of a 100,000 mt sale to unknown destinations. The soybean market is trading lower this morning with Harvest in the U.S. full steam ahead with yield reports mixed. The market is expected to continue to focus on U.S. harvest, Chinese demand, dryness in South American, and the September stocks report that is due out tomorrow.