Corn and beans slightly higher this morning as they trade 2 and 4 higher respectively.
A Chinese consulting company that works with the Government, says that China will have no problem meeting the 40 billion dollars in US goods. They estimate that China will begin purchasing in February and secure 45 mmts of beans, 8 mmts of corn, 5 mmts of wheat and 8 mmts of DDG’s. Livestock would be limited to 1 mmts of US pork and poultry. There is no mention of ethanol, which makes me think this list is far from complete or correct. It’s going to take a mix of many products to get to the 40 billion!
Rains have started to develop in Southern Argentina and will continue into the weekend. Totals should be from .5 to 2.5 inches. A couple system are set to move through in the next couple days. Brazilian will see the same normal weather pattern of rains of 1-3 inches every few days.
Funds are short 95,000 corn and 91,000 bean contracts after yesterday’s trade. I expect their short bean position to be erased in the coming weeks especially if China looks to buy 45mmt of beans. Corn could see some strength on bean follow thru, but I don’t expect much before the January WASDE.
Have a Safe Day!