Grain Exchange – 2-23-2021

Grain exchange update with Judy Uhlenhake

Corn and beans are rallying today, and wheat is a little softer. China’s purchases and South America weather are driving grain prices higher. Demand from China should remain strong as China’s pig numbers continue to increase with reports of complete recovery by the middle of the year.

South America bean harvest is the slowest in 10 years. Delays of Brazilian harvest increasing concerns about planting the second crop of corn, the safrinha, which is shipped into the export market in June. Prices are currently trading at a 2-week high. The EPA is signaling limiting oil refineries’ exemptions to blending requirements which would be helpful to the ethanol market.

Slow harvest in Brazil continues to help the U.S. export market. Nearby soybean futures are up 2% this morning. The market continues to be concerned about the tight U.S. supply. USDA predicts soybean carryout at 145 million bushel for 2021/22.

Wheat is a little lower after yesterday’s rally. U.S. winter crop conditions were mixed in a report last night. Oklahoma, Kansas and Nebraska reported lower conditions while Colorado, South Dakota and Illinois reported notable improvement. Exports are quiet this morning.

The question we are asked frequently is will the market continue to rise or will it head lower at some point? To answer the question no one really has any idea what is coming next, but volatility offers opportunity. Prices will eventually move lower so don’t just cheer on higher prices but act on making some sales. Work with you grain marketing specialist to get offers in so you don’t miss out on sudden price movements.

Enjoy this beautiful 40-degree day!