12/9/2020
Dec 09, 2020
A solid rebound in the corn and soybean trade overnight carried over into the day session. The renewed buying interest was sparked by expectations that the USDA will slimly cut the global carryover of the large grains. The sharper gains on the soybean board were also assisted by rumors that some South American soybean exports were washed out. We had a sale announcement this morning of 257,071 tonnes (10.1 mln bu) of corn to Mexico. Mexico has been a fairly steady buyer of corn as of late and it still remains to be seen when China will re-enter the market with a purchase on either the corn or soybean side. While most of the attention in our area has been focused solely on old crop marketing, Brazilian farmers have been busy selling soybeans for the 2021 and 2022 crops. It is currently estimated that 15% of the 2022 Brazilian soybean crop is already priced. I know an inverse market isn't the most attractive to sell into but, assuming we continue to follow the global trend of adding production area and increased yields, the current new crop prices for 2021 need a serious comparison to an operation's bottom line. Reminder, the December WASDE report is due out tomorrow at 11 a.m.