Grain > Commentary > 1-24-2024

1/24/2024

Jan 24, 2024

Corn completes its fifth consecutive higher close to some solid gains from 4-6 cents higher. Soybeans traded from 5 cents lower to 5 cents higher throughout the day, ending Wednesday mixed. Spreads for both continue to tighten! It's some odd price action considering there's no rumors of any hot export business. It appears money is interested in buying our front contract months and the good news is there could be some teeth in this turnaround. March soybeans are back above the price levels we were trading on the day of the WASDE report and March corn is back above our report day close. The weekly ethanol report showed production down roughly 22% from the prior week to 818k barrels/day. The cold snap created an interesting scenario where some plants were not able to grind and process corn for ethanol production. Ethanol stocks grew slightly, from 25.7 to 25.8 million barrels.

Like soybeans a few days ago, corn has turned it around. We can assume that our WASDE report is now priced into the market and we can look to the upside for potential targets. The first test for the bulls (if we get there) will be the 20-day moving average which closed near 458’0 today.

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