12/28/2023
Dec 28, 2023
Soybeans are now priced off of the March futures...
Very thin holiday trade and continued yo-yo price action sees corn 1-2 cents lower and soybeans down 6-11 cents. One day ahead of final notice day, January soybean spreads were extremely volatile with 6-7 cent ranges on the day and they appeared to cap off a month-long trend of tightening. Soybean demand has the looks of currently being satisfied but any fresh/new demand from China for US soybeans will change the landscape of the market. The market will either need to rally or invert to ration demand (or both). According to the USDA balance sheet, we still have a relatively tight supply of soybeans that are available. We are still optimistic at the prospect of some corn export business getting done in January but we are already seeing our typical shipment timeframe missing out on opportunity. Best to reward any short rallies in corn that poke into the 485-500 futures range prior to the January 12 report.
Very thin holiday trade and continued yo-yo price action sees corn 1-2 cents lower and soybeans down 6-11 cents. One day ahead of final notice day, January soybean spreads were extremely volatile with 6-7 cent ranges on the day and they appeared to cap off a month-long trend of tightening. Soybean demand has the looks of currently being satisfied but any fresh/new demand from China for US soybeans will change the landscape of the market. The market will either need to rally or invert to ration demand (or both). According to the USDA balance sheet, we still have a relatively tight supply of soybeans that are available. We are still optimistic at the prospect of some corn export business getting done in January but we are already seeing our typical shipment timeframe missing out on opportunity. Best to reward any short rallies in corn that poke into the 485-500 futures range prior to the January 12 report.