1/14/2021

Two-sided trade overnight and a strongly higher day session defined our trading day. The corn bulls were fed early this morning with the weekly export sales report release at 7:30am. Corn sales of 56.5 mln bu. was 20% above the top trade estimate. Also, the International Grain Council reduced their world corn production estimate by 510 mln bu. The combination of this news had the fund and spec money pushing us back towards contract highs. US corn still remains the cheapest globally despite a month long rally. Overnight, old crop beans were on either side of unchanged while new crop beans charged ahead trading 10 higher going into the morning break, mostly on speculation of Chinese buying interest for the 2021 crop. Weekly exports sales of 33.3 mln bu. of beans were also well above the top estimates putting the money on the long side of trade today. The bean board rebounded from yesterday's profit taking with cash beans finishing 24 cents higher on the day. We now know our domestic bean inventory and we are trading uncertainty in S. America. Rain is falling in Brazil with more forecasted. It is time to be extra cautious as corn and beans are extremely overbought and trade continues to ignore bearish signals. The dollar index firming will make exports less attractive, as well.