Grain Exchange – 12/22/2020
Santa seems to be giving the gift of rising grain prices this year. Last week March corn prices were up 13.5 cents, December 2021 corn prices were up 6 cents, January soybean prices were up 56.75 cents, and November 2021 soybean prices were up 27 cents. The higher prices are signaling a start to the battle for acreage for 2021.
Corn is trading a little higher today. China reported that the country’s pig herd grew nearly 30% from a year ago. This should create some more opportunity for corn steered towards China. Ukraine’s 2020/21 corn exporting is estimated to be lower. Fundamentally corn is taking on a bullish outlook with the 2020/21 corn carryout forecast below 1.5 billion bushels.
Soybeans are continuing to climb higher through todays trading session. The market is supported by strong demand from China, the Argentina workers strike, and the dry weather is South America.
Wheat is up 3 cents today. The price movement in wheat will watch for cold snaps in Russia and the U.S. and export business from China.
The markets have given us a lot to talk about. Prices are now trading at profitable levels. Work with your grain market specialist on setting your targets and put offers in to get your grain priced.
The next two weeks might show some volatility because of the holiday. There is usually less trading volume, so large orders can affect the market greatly.
2020 had many challenges yet we have so much to be thankful for. Thank you for your business this past year. We look forward to working with you in the new year.
Have a very Merry Christmas!!