10/23/2020

Overnight markets traded lower, before bouncing back some by the coffee break.  You just can't keep a good thing down and these markets are on a roll!  The USDA announced the sale of 100,000 MT’s of corn to Unknown this morning, which didn't get the market too excited.  After bouncing around for a while this morning both corn and beans put in a new high heading into the close in the last ten minutes of trade.  Beans went from unchanged at 12:50 to trading up 13 at 1:20. Apparently, nobody wants to be caught short heading into the weekend.  There continues to be more stories of China needing more US corn, but still there are no new announcements to prove it.  With that being said I believe the business is coming at some point because this market is sure acting like it.  Both corn and bean spreads are on their way to inverting, which is not common and will pose some problems logistically for some.  The market continues to move higher, farmer engagement is rather heavy of late, and basis continues to firm as the market wants grain sooner than later.  That is a near perfect storm.  We are definitely in some interesting times, but it is also dangerous for some.  Be careful and do what is best for your business.  This is not a time to get caught doing nothing with the election upon us and betting on China's demand in the future.  It's raining in Brazil, but no one cares.  It's all about US demand at the moment.