Grain Comments 11/25/20 8:05:07 AM|
November 25, 2020
Morning Comments :
Good morning. Although corn is modestly lower this morning, soybeans and wheat are slightly higher after a relatively quiet overnight trade. Fresh news is lacking as we head for a holiday weekend. Dalian soybean futures were higher with corn lower. Malaysian palm oil was higher. Crude oil is again higher. Reuters News is reporting that China may cancel some December/January soybean purchases due to high prices and poor crush margins. It’s probably not a question of if the Chinese will cancel but one of how many cargoes will not be taken. The trade has been talking about China importing a record amount of soybeans this year, but Chinese hog herds are only expected to reach 80% of their pre-African Swine flu levels during 2021. China does have a need to rebuild state supplies, but could decide to wait, hoping prices move lower next marketing year. It will be interesting to see how this plays out. Weather forecasts continue to predict another week of hot and dry weather for central and northern Brazil, with only southern Brazil receiving much rainfall. Mato Grosso is expected to record its driest September – November period in 40 years. Argentina is expected to receive beneficial rains over the next week, improving crop prospects there. Markets trade normal hours today and will not reopen until 8:30 AM CST Friday, closing at 12:05 to end the week. A lot of traders typically take the day before and day after Thanksgiving off, leaving reduced trading volumes. Today’s price direction would seem to be anyone’s guess. Have a good Wednesday and great Thanksgiving! We are grateful for your business!