2/8/2021

Both corn and beans were firmly higher overnight and into the morning break. We set a fresh round of contract highs in corn late morning, mostly fueled by the weekly export inspections report which showed 1.577 mln tonnes of corn inspected. This was 12% higher than the top trade estimate. Bean and wheat inspections also improved from the week prior. Overall, spec money coming in ahead of tomorrow's WASDE report was our main driver and it gave the feeling as if someone already knew what numbers are on tomorrow's report. Most of our news today wasn't anything overly bullish. Brazil bean yields are improving with the early harvest out of the way. Another possible outbreak of African Swine Fever in China is starting to make headlines. This could create an interesting mix of fundamentals for the corn market given that Chinese corn reserves are their lowest in 5 years. Would China continue to buy feedstuffs if their hog herd is in poor shape? S. American weather continues to play a role. After receiving some beneficial rains, Argentina is beginning to dry out again. Conditions in some areas of Brazil have improved after significant precipitation while some areas are still wet and experiencing delays in both harvest and 2nd crop planting. The most important thing tomorrow is a report that supports our current long-term uptrend.