DECEMBER 3, 2021   

Morning Comments :
Good morning. Corn and soybeans are again trading higher this morning, continuing the rally that began at mid-week. There have been daily rumors of Chinese soybean purchases and now the rumors have spread to U.S. corn. The CIF market for both commodities has rallied in recent days, but barge freight is also higher. Yesterday, trade talk had China buying three cargoes of soybeans to be sourced from the Gulf along with one more to be shipped from the PNW. The dryness in Argentina and southern Brazil will also be a factor in the corn market should it persist to the end of the month. Dalian corn and soybean futures were little changed to end the week; Malaysian palm oil was lower, losing 0.7%.  Crude oil has been bludgeoned since Thanksgiving, losing about 15% of its value in just a week. It is trying to recover a bit this morning as the nearby WTI contract is up nearly $2. Early session rallies this week have turned out to be selling opportunities in the crude market.  Stats Canada will release its December report this morning and analysts expect the Canadian wheat crop to be lowered 500,000 MT’s to 21.2 MMTs. The December WASDE report will be released next Thursday – no revisions will be made to production and the USDA may punt any demand revisions to the January report on 1/12. Market factors still seem to favor the upside for both corn and soybeans, but it is Friday and traders may elect to book some profits for weekend Christmas shopping. Have a good Friday and great weekend.