1/8/2021
Jan 08, 2021
Our first week of 2021 ends with corn trading firmly higher overnight and through the day session and beans posting double digit gains in both sessions. We had an 8 am sale announcement of 204,000 tonnes of beans to CHINA! We assume most of our sales marked to "unknown" are bound for China but this morning's announcement is almost like they wanted us to see it. We still have mixture of bullish and bearish news. The next 10 days show favorable crop weather in South America and at the same time, China's domestic corn price hit another all-time high. With the price of corn increasing globally and the labor dispute fully resolved, Argentina is already debating a repeal of the 60-day export ban on corn it just put in place a matter of days ago. March soybeans surged to another contract high of 1386 midday after a blast of heavy buying interest sent trade to 30 cents higher on the day in a matter of minutes. Any large volume purchases of commodities by China is typically for storage but they they continue to purchase for immediate use and appear to be a blackhole of demand Monday should see corn trade within range and trade consolidation on beans in preparation for the WASDE report on Tuesday. Have a good weekend!