1/19/2021

Overnight trade was mostly lower with corn seeing a 10-cent range and beans trading a quarter.  We had 8 am sale announcements for 228k tonnes of corn split between Israel and Japan and 132k tonnes of new crop soybeans sold to China.  Day session trade was more consolidated continued lower through session.  This is the corrective move we have been expecting in the beans since the sharply higher move following the WASDE report.  The profit taking and liquidation in the beans was not surprising after a long trade weekend that included good rains and the start of early bean harvest in Brazil.  Corn also corrected back today but another day matching today's lower close would be welcomed to fill our trade gap and create a healthier push higher when/if that happens.  The story for corn is developing.  The US isn't tight on corn inventory but anywhere else in the world that raises corn continues to debate between protecting domestic supply and taking advantage of rising prices.  Ukraine is considering tighter corn export restrictions and Argentina weighs the idea of higher corn export taxes.  The long-term outlook for wheat continues to improve.  China auctioned off most of its state wheat reserves last week at the equivalent of about $10.50/bu.  A combination of China demand and Russia's export tax should be supportive for the US wheat market.