Grain Notes 12/2/21 PM Comment

(Mike Moellenbeck)

Grain prices were higher with corn closing 1-6 cents higher and beans 4-16 cents higher.  For both commodities these values were well off the highs for the day.  Wheat continues to support corn as prices were up 15-25 cents.  Outside markets including the stock market and crude oil were higher as the DOW closed more than 600 points higher and crude oil was up $1.84/barrel.

  • The market may finally get some news from EPA regarding the US biofuel blending mandate in the next few days.  The mandate is expected to be a retro-active reduction for 2020 and 2021, dropping the volumes 17.1 billion gallons and 18.6 billion gallons. This would be down from the 20.1 billion gallons that was initially mandated for these years prior to the pandemic. The 2022 mandate from EPA is expected to be 20.8 billion gallons.
  • The Buenos Aires Grain Exchange reports  Argentina's first season corn crop is 63.5% complete to 61.3% last week and 63.7% last year.  90% of the crop is rated good/excellent which is down 1% from last week. The next couple of weeks are expected to see developing dry in both Brazil and Argentina.
  • Bean strength came from an announcement from USDA this morning that 130,000 metric tons of soybeans were sold to China and another 164,000 metric tons were sold to an unknown destination.  The weekly export sales were as expected at 1.063 MMT (39.1 mil. bushels).  China accounted for 24.2 million bushels of the total.
  • Some farmer selling today but nothing huge with basis being a mixed bag.  Corn basis in the western corn belt is slightly weaker with good farm movement against December contracts.  The eastern corn belt steady to firm.

Have a great night