Grain Exchange – 1/5/2021

Grain exchange update with Melissa Schmidt

Happy New Year!

Grain markets continue to make new highs. The USDA supply and demand report, which includes final production, quarter stocks as of December 1st and winter wheat planting, is one week away on January 12th at 11am. Do you have offers working?

Soybeans are the story for everyone. Argentina crop is 40% corn and soybean are under stress. Brazilian crops are 10-15% under stress and European models have it drier. Mato Grosso harvest is under way and will plant cotton after beans. Russia put a 30% export duty on soybeans until at least June. Malaysian palm oil has hit 10-year highs.

Corn is following soybeans. Ethanol margins are running in the red and slowing grind. Brazil exported 197 million bushels of corn in December vs 164 million bushels last December. Corn prices continue to show you profit and profit for the fall 2021 and beyond. Think about layering in sales and rewarding the market for giving you a profit.

Wheat in Kansas conditions improved to 46% good/excellent from 33% in late November. Wheat prices are pushing to 6 year high. Looking out to July 2022 wheat prices are profitable.

Make a plan and stick to the plan. Offers are a great way to sell now and forward. Think about selling from now until fall 2022. There is profit there and you need to take advantage. Hang on to this wild but fun time to be selling grain!