1/15/2021
Jan 15, 2021
The markets are closed for Martin Luther King Day and Glacial Plains will not be purchasing grain on Monday, January 18, 2021. We will gladly work a sell order for the market open on Monday night, if desired.
Corn mixed and wide, two-sided trade on beans overnight was followed by a mostly subdued and quiet day on the board. The day session began with corn 2 lower and beans 14 lower and moved very little throughout the day. We had a couple 8am flash sales with Mexico as a buyer of 110k tonnes of corn for 20/21 and 318k tonnes of soybeans to unknown in 21/22. Today's lower finish does offer part of the correctional move we've been looking for but today was more of a "risk-off" day in preparation of a 3 day break from trade as we remain overbought, corn especially. The Renewable Fuels Assoc. estimates that roughly 10% of US ethanol plants currently sit idle and potential refinery exemptions spark talk of additional shutdowns. Higher corn prices have already caused some January corn bids disappear and forced end-users to evaluate their market conditions. The recent rains in S. America create the possibility we may see Brazil crop production estimates start to increase. It's time to sharpen the pencil for 2021 new crop marketing and consider additional sales. It's easy to be bulled up based on the US drought monitor and the prospect of China making big purchases. The food for thought right now is 6 million acres added into corn production for the 2021 crop. A good average crop on those acres combined with current demand puts us right back into $3 futures.
Corn mixed and wide, two-sided trade on beans overnight was followed by a mostly subdued and quiet day on the board. The day session began with corn 2 lower and beans 14 lower and moved very little throughout the day. We had a couple 8am flash sales with Mexico as a buyer of 110k tonnes of corn for 20/21 and 318k tonnes of soybeans to unknown in 21/22. Today's lower finish does offer part of the correctional move we've been looking for but today was more of a "risk-off" day in preparation of a 3 day break from trade as we remain overbought, corn especially. The Renewable Fuels Assoc. estimates that roughly 10% of US ethanol plants currently sit idle and potential refinery exemptions spark talk of additional shutdowns. Higher corn prices have already caused some January corn bids disappear and forced end-users to evaluate their market conditions. The recent rains in S. America create the possibility we may see Brazil crop production estimates start to increase. It's time to sharpen the pencil for 2021 new crop marketing and consider additional sales. It's easy to be bulled up based on the US drought monitor and the prospect of China making big purchases. The food for thought right now is 6 million acres added into corn production for the 2021 crop. A good average crop on those acres combined with current demand puts us right back into $3 futures.