Grain Exchange – 1-12-2021

USDA WASDE (World Agricultural Supply and Demand Estimates) Report was released today at 11:00 am. The report made the commodity markets rocket higher.

Corn limited (+25 cents) for the day in the future contract months of March 2021, May 2021, and July 2021. The opportunity to move old crop corn has been presented with these greater numbers.

New crop corn had strong movement today was well. The December corn futures contract is up 17 cents which has powerful pull in fall new crop corn prices.

Nearby soybean futures contract was up 50 cents and November 2021 futures contract was up 19 cents. Once again allowing for attractive fall new crop soybean prices.

WASDE Takeaways

  • The 2020 U.S. Corn yield moved lower from 175.8 bu./acre to 172 bu./acre
  • Argentina Corn Production moved from 49 Million Tonnes to 47.5 Million Tonnes

Note: Argentina plans to hold more corn back from export this year as well.

  • Brazil Corn Production moved from 110 Million Tonnes to 109 Million Tonnes
  • Argentina Bean Production moved from 50 Million Tonnes to 48 Million Tonnes
  • Brazil Bean Production stayed the same from last month at 133 Million Tonnes
  • China corn imports have increased from 260 Million Tonnes in Dec. to 260.7 Million Tonnes in Jan. That this time last year China was importing 260.8 Million Tonnes. Strong increase this month 17.5 Million Tonnes compared to last month at 16.5 Million Tonnes
  • Mexico corn imports remain the same at 28 Million Tonnes. Number is up from last year which was 26.5 Million Tonnes. Mexico has imported 16.5 this month and 17.3 last month
  • China has imported 19.6 Million Tonnes of soybeans this month which is up from last month at 17.5 Million Tonnes
  • USDA added $.20 to its average producer corn price forecast which is now at $4.20
  • USDA added $.60 to its average producer bean price forecast which is now at $11.15

The market today is continuing to show its gratitude for the American farmer by creating more opportunities to enhance profitability in all markets. The market moves in old crop and new crop are mighty.

Cash markets for new crop for all commodities is promising. The opportunities to sell over $4.00 corn, $11.00 beans, and $5.80 wheat in the cash market!

With a market like we are experiencing today the importance of offers cannot be overlooked.

The phrase that comes to my mind when I look at this market today is…

Carpe Diem “Seize the day”