Grain > Commentary > 11-18-2020

11/18/2020

Nov 18, 2020

11/18/2020
We did have an export sale announcement this morning, which was 140,000 tons of corn to Unknown.  That is not the rumored China confirmations we were looking for.  Corn and beans both made new highs today on continued export optimism and continued managed money buying.  Corn made a double top at 4.28 December futures before fading slightly into the close and finishing up a nickel on the day.  Beans traded all the way up to a tick short of 11.90 futures as we seemed poised to get to the 12.00 mark this week.  This market could continue to move higher especially soybeans, but I think it is important to take a look at current levels (both old and new crop) and make sure you get something covered.  This is a dream come true and I am guessing the bankers would also be happy to see some sales on the books at current levels.  There are a number of unknowns driving this market and nothing is written in stone.  The main unknown factors I speak of are Covid, SA weather, China and overall demand.  Anyone of these could be a game changer at any point in time with a single headline.  Be careful and weigh risk vs reward as you operate your individual business plans.
 

Read More News

9/12/2025
Sep 12, 2025
USDA report day.  Corn and beans were trading higher pre-report on thoughts of a reduction to yields.  Well....we got what we were thinking but the USDA decided to throw a twist into the mix.  The 25/26 corn yield decreased slightly less than expected by 2.1 bu to 186.7 bpa, but they gave us the largest planted acreage shift on this report in at least the last 20 years (+1.4 mil acres) spurred an increase in production to 16,814 mbu.  25/26 ending stocks were slightly lowered by 7 mbu to 2,110 mbu. 
8/21/2025
Aug 21, 2025
Today the market ran higher on rumors for positive SRE announcements coming soon.  Bean oil was up over $2.  Beans finished the day up 20 cents at 10.56 Nov futures.  There is a chance we could make a run at the 10.74 Nov highs from back in June.  If we get there, I am a seller.  Bean basis remains in the garbage, so a run higher in futures doesn't help that either.  We still don't have a trade deal, so I think any rally is short lived at this time. 
8/15/2025
Aug 15, 2025
Corn and beans both had nice gains heading into the weekend.  Corn might seem terrible as of late, but for corn to only be down 2 cents since report day is impressive.  That was one of the most bearish reports for corn we have seen in quite some time.  Corn finished the week 13 cents off its lows and unchanged for the week.  New crop corn basis has softened a little on the week as the extra 2 million acres and 8 bushels of yield from the report has also scared a few exporters off.