MarketEdge PM Comments

Dec 12, 2023

(Cody Forde)

Good afternoon,

Corn and soybeans did it once again! Corn traded slightly higher while soybeans trader lower. We seem to be playing a game of switching directions every other day. March corn last trade was 484^6 up 3^2 helping to gain back some of yesterday’s losses. January soybean last trade was 1323^4 down 12^4 giving up some of yesterday’s gains from less than expected rainfall over the weekend. What targets should be watched for over the next coming weeks?  I would like to see March corn close above 490 and then make its way towards the 5-dollar area which will be stiff psychological resistance. To break much higher, I think we will need more of a weather story out of South America or large export demand to send prices higher.

In export news we had another flash sale of 198,000 tons to unknown destination for the 2023/2024 marketing year. My guess is this sale will be switched to China’s name in the coming weeks. Argentina is temporarily suspending grain export register. That would be similar to US exporters not having to register sale to the USDA.  As President Milei’s term starts, we are going to continue watching to see if we see more export taxes lifted, which could come after the Argentina government gets inflation and currency situation under control. Farmers in Mato Grosso, Brazil are holding back on additional sales as they are uncertain on their current crop. This is according to Mato Grosso Institute of Agriculture economics. If this continues to hold true, we could see heavy selling by the South American farmer if they have a good crop.

Read More News

Dec 30, 2023
March corn closed down 3 at 4.7125 and May corn closed down 2 ½ at 4.84.
Dec 28, 2023
Good Morning.  Corn and soybean futures finished the overnight session slightly higher. 
Dec 27, 2023
Grains were mixed today, during a relatively quiet week in between holidays and light trading volume.